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| Version 1 | Version 2 |
|---|---|
| Walmart in discussions to sell stake in Asda | Walmart in discussions to sell stake in Asda |
| (32 minutes later) | |
| Walmart says it may sell a majority stake in Asda, its UK supermarket, 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. | 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. | 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 be likely to retain a stake in Asda if the plan moved forward. | |
| "No decisions have been made and we will not be commenting further on these discussions," it said. | "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." | "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. | 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. | However, in recent years, it has seen increased competition from low-priced German competitors such as Aldi and Lidl. |
| 'Clear strategy' | 'Clear strategy' |
| After regulators blocked the Sainsbury merger, Walmart said it was considering a stock market flotation for Asda. | 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". | 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. | 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. | 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. | "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. | 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. |
| John Colley, associate dean of Warwick Business School, said: "Having pinned all their hopes on a merger with Sainsbury's, bosses at Asda have struggled to find a Plan B for the business. | |
| "The company is clearly not wanted by Walmart, which is occupied with greater challenges such as the threat of Amazon." | |
| He said a flotation had "always seemed improbable", but the idea suggested that Walmart had been "struggling to find potential buyers at a price it found appealing". |