Walmart unloads its stake in Dada Nexus to JD.com

JD.com (NASDAQ:JD) confirmed in a regulatory filing that it acquired Walmart’s (WMT) entire stake in Dada Nexus Limited (NASDAQ:DADA). The company picked up 87.5 million ordinary DADA shares and 1.875 million DADA ADSs through a subsidiary. The Chinese e-commerce giant will now hold 63.2% of Dada’s (DADA) shares.

Following the sale, Walmart China CEO Christina Zhu resigned from Dada’s (DADA) board. Looking ahead, JD.com (JD) anticipates ongoing collaboration with Walmart (WMT) and views its increased investment in Dada (DADA) as a vote of confidence in its long-term growth within JD.com’s (JD) ecosystem.

Last month, Walmart (WMT) disposed of its near 10% stake in JD.com (JD). “This decision allows us to focus on our strong China operations for Walmart China and Sam’s Club, and deploy capital towards other priorities,” a Walmart (WMT) spokesperson stated at the time. “JD has been a valued partner to us over the past eight years, and we are committed to a continued commercial relationship with them.”

Shares of JD.com (JD) were up 1.60% in premarket trading on Tuesday, but have not recouped to where they stood when the Walmart (WMT) announcement was made. Dada Nexus (DADA) jumped 8.44% in the early session. Walmart (WMT) poked out a 0.22% gain.