Wal-Mart Stores Inc's Mexican unit said on Wednesday it was selling its 119-store Suburbia clothing chain to Liverpool for about US$852 million, as the world's biggest retailer streamlines operations in its largest non-U.S. market as measured by stores.
Wal-Mart De Mexico y Centroamerica, also known as Walmex, will sell Suburbia along with its properties for US15.7 billion pesos ($852 million) including debt of 1.4 billion pesos. Walmex will also receive an additional 3.3 billion pesos in items including declared dividends after the deal closes.
Wal-Mart has been looking to boost its core business of running discount retail and membership stores in Mexico, focusing on expanding the fresh food business. Last January, the retailer said it was looking to sell Suburbia, which runs department stores, without giving a timeframe on when it expects to finish the sale.
The divestiture is part of Wal-Mart's strategy, announced in 2013, to streamline and sell businesses not central to its overseas operations in Mexico after spreading itself thin in the market running different types of businesses.
