Tuesday, June 15, 2021
Home INDIA India Walmart revives talks about Asda supermarket sale

India Walmart revives talks about Asda supermarket sale


india Shoppers outside an Asda store

Image copyright
Getty Images

Walmart has restarted discussions about selling a majority stake in Asda, its UK supermarket, after putting the plans on hold to focus on the pandemic.

The US retail giant had said in February that it was in talks with potential investors in the business.

That came after UK regulators blocked Walmart’s plan to merge Asda with Sainsbury’s last year on fears it would raise prices for consumers.

A Walmart spokesman said it was the “right time” to revive the talks.

“Walmart and Asda have restarted conversations with a small number of third-party investors who are interested in acquiring a stake in Asda and partnering with Walmart, following renewed inbound interest,” the spokesman said.

“There is no certainty that a transaction will happen,” he added.

India ‘Clear strategy’

Walmart, which purchased Leeds-based Asda in 1999, has overhauled its international strategy in recent years, to focus on markets, such as India, where it sees growth and forge alliances with local partners, such as JD.com in China.

In 2018, it announced plans to merge Asda with Sainsbury’s in a deal in which it would retain 42% of the combined business.

After regulators blocked the deal, Walmart said it was considering a stock market flotation for Asda.

Among the top three supermarkets in the UK, Asda claims an estimated 15% of the market. It has faced increased competition from discount chains, especially Germany’s Aldi and Lidl.

In a February survey by consumer group Which?, Asda was ranked worst among supermarkets for customer satisfaction, and behind the German firms when it came to prices.

Asda sales, excluding petrol, increased 3.5% in the three months to 31 March, the company said in May. Including petrol, sales declined.

However, grocery stores such as Walmart have been some of the few retailers to report strong business during the pandemic, as customers focus their spending on essentials.

Walmart said the pandemic had “demonstrated Asda’s resilience and the key role we play in supporting different communities”.


Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

India North Macedonia: Police discover 148 migrants in vans

Police in North Macedonia say they have discovered 148 migrants crammed into trucks in two separate operations in central and northern parts of the country, and have arrested two men on suspicion of trafficking migrantsAugust 12, 2020, 11:36 AM• 2 min readSKOPJE, North Macedonia -- Police in North Macedonia say they have discovered 148 migrants…

India Article 370: Curfew in Kashmir as protesters plan ‘black day

Publishedduration4 Augustimage copyrightGetty Imagesimage caption5 August is the first anniversary of the abrogation of Article 370Curfew has been imposed in Indian-administered Kashmir in anticipation of protests ahead of 5 August - the day the government stripped the region of its special status. Officials say the curfew is meant to prevent violence by groups planning to…

India The Newest: Confirmed coronavirus instances attain 20 million

BEIJING — China’s newly confirmed community transmitted cases of coronavirus fell into the single digits on Wednesday, while Hong Kong saw another 33 cases of infection.The National Health Commission said all nine new cases were found in the northwestern region of Xinjiang, whose capital Urumqi has been at the center of China’s latest major outbreak.…

India India’s financial system contracts by 24%, worst in at the least 24 years

India’s government says the country's economy contracted by 23.9% in the April-June quarter, its worst performance in at least 24 years, as the coronavirus pandemic ravaged what was once the world’s fastest growing major economyBy SHEIKH SAALIQ Associated PressAugust 31, 2020, 2:01 PM• 2 min readNEW DELHI -- India’s economy contracted by 23.9% in the…

Recent Comments