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Walmart in discussions to sell stake in Asda | |
(32 minutes later) | |
Walmart says it may sell off part of Asda, its UK supermarket chain, after "inbound interest" in the idea. | Walmart says it may sell off part of Asda, its UK supermarket chain, after "inbound interest" in the idea. |
The US retail giant said it was talking to a "small number of interested parties" about a possible investment. | |
It comes after UK regulators blocked Walmart's plan to merge Asda with Sainsbury's last year on fears it would raise prices for consumers. | |
Walmart said it would likely retain a stake in Asda if the plan moves forward. | |
"No decisions have been made and we will not be commenting further on these discussions," it said. | |
"If or when we decide to pursue this opportunity further, our first priority will be to share more detailed information with our colleagues." | |
Walmart purchased Yorkshire-based Asda in 1999. The company is among the top three supermarkets in the UK, with an estimated 15% of the market. | |
However, in recent years, it has seen increased competition from low-priced German competitors such as Aldi and Lidl. | |
'Clear strategy' | |
After regulators blocked the Sainsbury merger, Walmart said it was considering a stock market flotation for Asda. | |
On Wednesday, the firm said that remained "an attractive long-term objective". | |
"Asda is a great business with a clear strategy for the future and Walmart is committed to ensuring it has the resources and support it needs to deliver that strategy," Walmart said in a statement. | "Asda is a great business with a clear strategy for the future and Walmart is committed to ensuring it has the resources and support it needs to deliver that strategy," Walmart said in a statement. |
Walmart has overhauled its international strategy in recent years, scaling back its business in countries such as Brazil while partnering with local firms in markets where it sees growth. | |
In 2018, it took a majority stake in India's online retailer, Flipkart. It also has partnerships with China's JD.com and Japan's Rakuten. | |
"Walmart has a clear international strategy around 'strong local businesses, powered by Walmart' - which involves a number of different ownership arrangements, depending on the needs of its different markets," the company said. | |
A potential third-party investment in Asda would be intended to "support and accelerate the delivery of Asda's strategy and position Asda for long-term success", it said. |