Wal-Mart ( WMT) agreed to sell its German business to German retailer Metro.

The Bentonville, Ark., retail giant will take a $1 billion pretax loss on the sale, whose terms weren't disclosed.

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

"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."