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Walmart to sell 80% of Brazil operations to private equity firm Advent

Walmart Inc. will sell 80% of its Brazilian operations to private equity firm Advent International Corp. for an undisclosed amount, the retailer said June 4.

The deal is subject to regulatory approval in Brazil, and Walmart said it expects the deal to close later this year.

Walmart, which will retain a 20% stake in the Brazil business, said it expects to record about $4.5 billion in noncash net losses as a discrete item for the second quarter from the transaction. The retail giant attributed a significant portion of the net loss to the recognition of cumulative foreign currency translation losses and said the final loss could fluctuate significantly due to changes in exchange rates.

Walmart said it expects no ongoing material impact to its EPS in the current fiscal year and a slight positive impact next fiscal year.

The decision follows "a thoughtful and deliberate review of Walmart's international portfolio" Walmart said in a June 4 release.

The retailer has shifted its focus to different international areas since Judith McKenna took the helm of the company's international segment as its CEO, executive vice president and president in February. Walmart announced the sale of a majority stake in Asda Stores Ltd. to British retailer J Sainsbury PLC on April 30. In May, Walmart announced its plan to acquire a majority stake in India's Flipkart Online Services Pvt. Ltd. for $16 billion, the retailer's largest acquisition in at least the last decade.

Credit Suisse and Euro Latina Finance advised Advent on the Brazil deal, while Goldman Sachs & Co. LLC. advised Walmart.