Walmart has seen its market capitalization rise by more than $20 billion to $27.4 billion after it reported better-than-expected fourth-quarter profit.
The company’s stock fell 1.2% to $39.30 on Wednesday after reports that it was looking to expand its business in China and could be buying a new food manufacturing business.
Walmart said it planned to spend $1.6 billion to expand the China operations it has been pursuing since 2015.
It said it had previously planned to buy a food manufacturing plant in Mexico.
However, the new investment plan, first reported by the Wall Street Journal, is the first major investment the company has made in the country since 2015 and the first such deal in China.
The news came after a report that Walmart plans to open a $3 billion food manufacturing facility in China in the second quarter.
The investment is likely to benefit the company, which currently has a joint venture with Chinese company China General Machinery Industry Corp (CGMI).
Last month, Walmart said it would spend $2 billion to develop and manufacture food in China, which is also home to more than 70% of the world’s food production.