The deal is valued to approximately cost $1.6 billion
Walmart to sell 85% of its Japanese subsidiary. Source: walmartjapanseiyu.com
In its focus to accelerate digital transformation in Japanese retail, KKR and Rakuten will acquire stakes from Walmart.
KKR will purchase a majority stake of 65% in Seiyu while Rakuten will acquire a minority stake of 20%. Walmart will retain a 15% stake. This will benefit both Seiyu’s business partners and customers.
KKR and Rakuten have a track record in digital marketing transformations and driving e-commerce growth across the globe. The two will be pivotal in helping Seiyu become the value retailer of choice.
Seiyu is already exceeding financial and operational goals across vital sectors including customer satisfaction, market share, financial performance, and associate engagement. The partnership between the three companies will support Seiyu’s efforts to becoming the leading omnichannel retailer in Japan.
The joint investment will also accelerate digital channels including app-based shopping, service delivery, and payment. It will also support the introduction of cashless payment methods which will be helpful with the ongoing pandemic.
The partnership will improve both offline and online channels. Also, it will ensure product offerings stay ahead of the consumer’s needs.
KKR looks to bring its proven track record of investing in large corporations and subsidiaries and help them become independent, successful businesses. To create value, KKR will also bring in its network of advisors, specialists, and portfolio companies.
Seiyu will be led by the current CEO Lionel Desclee through a transition period. After this, Lionel will take a new role within Walmart.
The transaction is expected to commence within the first quarter of 2021.
We’ve reported that Walmart has partnered Goldman Sachs to provide online merchants with business credit lines.
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