Walmart has agreed to sell 80% stake in its Brazilian unit to global private equity firm Advent International.

The decision is the result of a review process of Walmart’s international portfolio.

The investment will enable the Brazilian retailer to strengthen its business and position it for long-term success.

Advent International Brazil managing partner Patrice Etlin said: “We have been in Brazil for over 20 years and are excited about this partnership with one of the country’s leading retailers.

“We believe that with our local market knowledge and retail expertise we can position the company to generate significant results and reach new levels of success in Brazil.

“We plan to invest in the business, work with the Walmart Brazil management team, associates, Walmart, and our industry advisors to create a more agile and modern company to accelerate its development and improve the customer experience.”

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“We believe that with our local market knowledge and retail expertise we can position the company to generate significant results and reach new levels of success in Brazil.quot;

Under the terms of the deal, Walmart will retain the remaining stake in its Brazilian arm following the completion of the transaction.

The retailer expects a net loss of approximately $4.5bn as a discrete item during the second quarter as a result of the transaction.

Walmart was advised by Goldman Sachs and Advent International by Credit Suisse and Euro Latina Finance for the transaction. The transaction is subject to regulatory approval in Brazil.

Walmart UK, Latin America and Africa EVP and CEO Enrique Ostale said: “We will retain a stake in Walmart Brazil and continue to share our global retail expertise, giving our Brazil business the best opportunity for long-term growth, providing opportunity for associates and low prices for customers.”

The retail major currently operates 38 stores with 55,000 associates in 18 states across Brazil.