On Monday, Walmart announced that it had agreed to sell Asda, its British subsidiary, to a consortium of investors led by the private equity firm EQT. The deal valued Asda at £6.8 billion, or about $8.8 billion, and was a significant retreat by Walmart from Britain, where it has struggled to compete against nimbler rivals.
The sale is the latest in a series of divestitures by Walmart, which has been under pressure from activist investors to improve its stock price and focus on its core businesses in the United States and other markets. In recent years, Walmart has sold or spun off businesses in China, Brazil and elsewhere.
As part of the deal announced on Monday, Walmart will retain a minority stake in Asda and will have a seat on its board. The other members of the consortium are the family investment office of the billionaire brothers David and Simon Reuben and an investment vehicle controlled by the Issa brothers, two prominent British entrepreneurs of Somali descent.
The sale is expected to be completed in the second half of this year, pending regulatory approval. EQT said it planned to invest an additional £1 billion in Asda over three years and would focus on “maintaining and enhancing” its position as a “value-led supermarket.”
Did Walmart sold Asda?
Yes, Walmart sold Asda to a consortium of investors led by the private equity firm EQT.
