Walmart mulls Asda sale following failed merger
Asda’s parent company Walmart is considering selling the ‘Big Four’ Grocer after its failed merger with Sainsbury’s was announced last month.
According to the Daily Mail, the US giant is mulling a potential float or sale of the company after reported interest from bidders including some private equity firms. It is also rumoured that bargain chain B&M has approached Walmart regarding a potential sale. Asda had been reported to be considering a takeover of B&M in 2017.
The news comes after the Competition and Markets Authority (CMA) blocked the Sainsbury’s-Asda merger after finding it would lead to “increased prices in stores, online and at many petrol stations across the UK”.
The merger was said to be worth around £12bn and would have seen the grocer’s leapfrog Tesco as the country’s largest supermarket. However, in its final report published today the CMA found that UK shoppers and motorists would be “worse off” if Sainsbury’s and Asda were to merge.
Following an in-depth investigation, a group of independent CMA panel members concluded that the deal would result in a “substantial lessening” of competition at both a national and local level for people shopping in supermarkets.
