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Walmart to cut stake in Brazil unit; Sharp to acquire 80.1% of Toshiba's PC biz

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Walmart to cut stake in Brazil unit; Sharp to acquire 80.1% of Toshiba's PC biz

TOP NEWS

* Walmart Inc. continued to refocus its international operations on what it considers more promising markets with the planned sale of a majority stake in its Brazil business. Walmart will exchange 80% of Walmart Brazil for up to $250 million in contingent consideration, which is based on time and operating performance of the Brazil unit, from private equity firm Advent International Corp., a Walmart spokesman told S&P Global Market Intelligence. No cash will immediately exchange hands in the transaction, he said. Walmart did not disclose a price for the deal.

* Sharp Corp. will acquire 80.1% of Toshiba Corp.'s personal computer business for ¥4 billion, marking the return to the PC business of Hon Hai Precision Industry Co. Ltd.'s Japanese consumer electronics unit after its exit in 2010. Toshiba expects the share purchase agreement to be completed, including all government approvals, by Oct. 1, after which the wholly owned subsidiary Toshiba Client Solutions Co. Ltd, or TCS, will be deconsolidated from Toshiba Group. Sharp also plans to raise up to ¥200 billion through a public offering, which it expects to complete on or after July 1, as it transitions from restoring the company's financial health after being acquired by Taiwan's Foxconn to sustaining growth.

TEXTILES, APPAREL AND LUXURY GOODS

* Antoine Arnault, CEO of LVMH Moët Hennessy Louis Vuitton SE brand Berluti, will be in charge of the luxury conglomerate's communications and image concerns, Reuters reported, citing a company memo. Chairman and CEO Bernard Arnault reportedly said in the internal memo that the appointment comes at a time where LVMH is experiencing "increased exposure" from public authorities and on social media.

* H&M Hennes & Mauritz AB collaborated will Alphabet Inc.'s Google Inc. to develop a mobile voice application from Google Assistant called H&M Home Stylist, which gives advice ranging from personal styling to home decor. The app is available in select markets. Meanwhile, the apparel company's brand Monki also teamed up with tech firm HoloMe to test high-definition human holograms in augmented reality, allowing users to examine clothes on holograms and interact with them in detail through smartphones or tablets.

* Footwear products producer Nike Inc. appointed Jim Scholefield as chief information officer, responsible for leading the Oregon-based retailer's future growth. Scholefield, who is due to join the company June 29, previously served as chief technology officer for Coca-Cola Co., where he worked on strategy, technology operations, production support and technology engineering.

MULTILINE RETAIL

* Sears Holdings Corp. amended a loan agreement dated Oct. 8, 2017, with lenders controlled by ESL Investments Inc., hedge fund of Sears Chairman and CEO Edward Lampert, to borrow an additional $186 million under its term loan facility. Approximately $593 million in loans were outstanding under the existing loan agreement prior to the additional borrowings of $186 million, which brings the total amount of the outstanding loan to $779 million. Sears used the proceeds of the borrowing to repay all the loans under its real estate loan facility dated May 22, 2017, and terminated the agreement after.

* Mothercare PLC is "considering all options" for its toy store subsidiary, Childrens World Ltd., after the British retailer's creditors did not approve proposals under a company voluntary arrangement, which is similar to a bankruptcy filing in the U.S. However, creditors approved Mothercare's restructuring plans, which will see the department store chain cut down its U.K. store portfolio.

E-COMMERCE

* Alibaba Group Holding Ltd. made a strategic investment of an undisclosed amount in Chinese online parenting services platform Babytree that takes its valuation to $2.19 billion. Babytree said the move would see the companies collaborate in e-commerce, customer-to-maker services, advertising sales, paid expert knowledge, new online and offline retail operations, and other related maternal and child businesses. Babytree also counts investment firm Fosun International Ltd. and China-based tutorial service provider TAL Education Group among its previous strategic investors.

* Online shopping company Rue La La agreed to acquire Hudson's Bay Co.'s e-commerce platform Gilt for an undisclosed amount. The deal is expected to close in July, after which Rue La La and Gilt will continue to operate independently but function under a merged company called Rue Gilt Groupe. Rue La La plans to hire over 150 employees to run its newly acquired business across multiple locations in the U.S.

* Investment firm Vaultier7 LLP led a financing round that injected $15 million in online fashion retailer The Modist, the two companies confirmed to Women's Wear Daily. As part of the investment, Vaultier7 founders Anna Sweeting and Montse Suarez reportedly have joined the board of the e-commerce company, which specializes in high-end, modest fashion. The Modist will use the funds to enhance its leading position in core markets.

FOOD AND STAPLES RETAILING

* U.S. retail pharmacy chain Walgreens Boots Alliance Inc. completed the previously announced sale of a 30% stake in Guangzhou Pharmaceuticals Corp. to its joint venture partner Guangzhou Baiyunshan Pharmaceutical Holdings. The company said it will continue to hold its remaining 20% stake in Guangzhou Pharmaceuticals as an equity method investment.

INDUSTRY NEWS

* A group of nonprofit advocacy organizations funded by conservative billionaire industrialists David Koch and Charles Koch will launch a campaign to fight against tariffs imposed by the administration of U.S. President Donald Trump. Freedom Partners Chamber of Commerce, Americans for Prosperity and The Libre Initiative released a list of trade principles that recommends the elimination of trade barriers and the encouragement of competitive markets. The multiyear, multimillion-dollar initiative also will include "paid media, activist education and grassroots mobilization, lobbying and policy analysis."

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The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, Hang Seng gained 0.31% to 31,093.45, while the Nikkei 225 rose 0.28% to 22,539.54.

In Europe, around midday, the FTSE 100 dropped 0.33% to 7,715.60, and the Euronext 100 lifted 0.55% to 1,070.93.

On the macro front

The Redbook Index, the U.S. Services Purchasing Managers' Index, the Institute For Supply Management non-manufacturing index and the Labor Department's JOLTS report are due out today.

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