It is often said that Walmart owns Asda, but this is not strictly true. Walmart does own a controlling stake in Asda, but the company also has other shareholders.
Asda was founded in 1965, and was originally owned by Associated Dairies and Farm Stores Ltd. In 1979, the company was sold to Gateway Foods, and then in 1987, it was acquired by Walmart. At the time of acquisition, Walmart owned 80% of Asda, with the remaining 20% owned by other shareholders.
Walmart’s ownership of Asda has been beneficial for both companies. Asda has been able to take advantage of Walmart’s buying power to source products at lower prices, while Walmart has been able to use Asda’s store network to enter the UK market.
In recent years, however, Asda has struggled to compete with the likes of Tesco and Sainsbury’s, and its performance has been disappointing. In response, Walmart has been putting more emphasis on its own brand products, which are sold exclusively at Asda.
There have been rumors that Walmart might sell its stake in Asda, but so far no such move has been made. For now, at least, it seems that Walmart is committed to its investment in Asda.
Although Walmart owns a controlling stake in Asda, the company also has other shareholders. As such, it cannot be said that Walmart strictly owns Asda.
However, the benefits that both companies have reaped from their partnership are significant. If Asda continues to struggle in the UK market, it is possible that Walmart may sell its stake in the company.
