Walmart shuts down Moscow office after failed business attempts

[News_Editor]

Walmart shuts down Moscow office after failed business attempts

2010-12-14 20:28:05 GMT+7 (ICT)

MOSCOW, RUSSIA (BNO NEWS) -- Walmart has announced the closing of its Moscow office after failing to find an acquisition to expand its ongoing international projects.

The world's largest retailer made the announcement just one week after Russian retail chain Kopeika - which had been widely seen as a Walmart target - was bought by X5 Retail Group NV's Pyaterochka, the country's largest supermarket, for $1.66 billion.

"Since we have decided to enter the (Russian) market through acquisition, and since there is no clear acquisition partner in the near term, there is not a business reason to continue our Moscow representative office," said Doug McMillon, chief executive of Walmart International.

Walmart, which makes 75 percent of its sales in the United States, initially opened its Moscow office in early 2009, appointing a former executive of German retailer Metro, Stephan Fanderl, to head the office.

"We continue to be excited about our international business, including markets where we already operate, such as Brazil, China and India, where we have tremendous growth opportunity," McMillon added.

Previous targets included the acquisition of Lenta, which operates several hypermarts in Russia, but the deal never went through after a dispute between rival shareholder groups over the CEO's position led to a violent fracas at its annual meeting.

Besides Russia, recent international expansion include Walmart's deal to pay $2.3-billion for control of Massmart Holdings in South Africa.

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