Asda, Britain’s third largest supermarket chain, has been sold by Walmart to the private equity firms Advent International and Sofina for £6.8bn. The US retail giant said the sale was in line with its strategy to focus on its core markets of the US and Canada.
Asda, which has more than 600 stores in the UK, employs around 160,000 people. It is the UK’s second-biggest food retailer after Tesco.
Advent and Sofina said they would invest £1bn in Asda over three years to “support its continued growth”, including upgrading stores and expanding its online offering.
The deal marks a further retreat by Walmart from international markets. In 2018, it sold a majority stake in its Brazilian business to private equity firm Advent.
It comes as the UK’s grocery market is undergoing major changes, with German discounters Aldi and Lidl continuing to take market share from the big four Supermarkets – Tesco, Sainsbury’s, Asda and Morrisons.
In response, the big four have been investing heavily in their own discount brands – Tesco with Jack’s, Sainsbury’s with Argos and Asda with George.
The sale of Asda is subject to regulatory approval and is expected to complete in early 2020.
Has Asda been sold by Walmart?
Yes, Asda has been sold by Walmart to Advent International and Sofina for £6.
