Walmart is expected to sell its business in north and central China to Wumart for US$3 billion (19.5 billion yuan).
Both Walmart and Wumart have denied the rumor, but an employee who asked not to be named said many were already discussing compensation and rearrangements after the merger.
Though the decision is not final, Wumart is said to take over Walmart’s 130 supermarkets.
Sam’s club, the only Walmart business making money, is not part of the deal. In its latest fiscal report, Walmart had said “profit from the double-digit growth of Sam’s club was offset by the weak performance of the supermarkets.”
In 2019, Wumart brought 80 percent of Metro AG China’s shares.