Wal-Mart announces sale of 85 German supersecenters to Metro Group

Wal-Mart Stores, Inc., announced that the company has agreed to sell its German retail business to Metro AG. The terms of the agreement were not disclosed. "As we focus our efforts on where we can have the greatest impact on our growth and return on investment strategies, it has become increasingly clear that in Germany s business environment it would be difficult for us to obtain the scale and results we desire," said Vice-Chairman Michael Duke. "This sale positions us to increase our focus on the markets where we can achieve our objectives." The company expects to incur a pre-tax loss related to this transaction of approximately US$1 billion for the company s second quarter of fiscal year 2007.

Wal-Mart Germany operates 85 Supercenters employing 11,000 associates. The US retail giant entered the German market eight years ago with the acquisition of the Wertkauf and Interspar hypermarket chains. The transaction is subject to approval by the competent anti-trust authorities.