Global retail major Walmart is reportedly planning to sell its Japan-based supermarket chain Seiyu as part of plans to review its global operations.
Nikkei Asian Review reported that the transaction could be valued at around $2.7bn to $4.5bn.
Seiyu reported a net loss of $1.78m in 2016.
According to the sources familiar with the matter, major retailers, as well as private equity firms, have been approached by Walmart regarding the sale of Seiyu.
The deal will also mark Walmart’s exit from the Japanese supermarket space.
The Nikkei business daily also reported that the potential buyer will have to bear labour expenses, as well as costs to reorganise Seiyu’s distribution centres and 335 locations.
Established in 1963, Seiyu is one of the largest supermarket chains in Japan.
In May 2002, Walmart acquired a 6.1% minority stake in Seiyu followed by majority stake to make it the wholly owned subsidiary in 2005.
The company later acquired all the shares of Seiyu and gained sole ownership in 2008. Seiyu finally became a wholly owned subsidiary of the Walmart-established holding company, Walmart Japan Holdings Godo Kaisha (KK).
Seiyu currently operates supermarkets and hypermarkets offering a range of products such as food, apparel, general merchandise and other products across its stores in Japan.