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American retailer Walmart has revealed it is in talks over a potential sale of its stake in ‘Big Four’ grocer Asda.
Following “inbound interest”, Walmart and Asda confirmed that both are currently considering whether there is an “opportunity” for a third party to invest in the UK grocer, alongside Walmart, in order to “support and accelerate the delivery of Asda’s strategy and position [it] for long term success”.
The company said it is now discussions with a small number of “interested parties” which share Walmart and Asda’s “commitment and passion to growing the business”. However, Walmart said no decisions have been made and it will not be “commenting further on the discussions”.
A joint statement by Walmart and Asda read: “Walmart firmly believes that an IPO is an attractive long-term objective for Asda. 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 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.”
It comes after the Competition and Markets Authority (CMA) blocked the attempted merger between Asda and Sainsburys’.
The order came into force on 9 July 2019 as it said the “creation of that situation may be expected to result in a substantial lessening of competition” in local and national markets, online delivered groceries, and the retail supply of fuel.
The merger would have been worth £13bn and would have resulted in the companies taking a 31% share of the grocery sector.
