In 2018, Walmart paid $3.3 billion for a 77 percent stake in Asda, one of the United Kingdom’s largest grocery chains. The move gave Walmart a much-needed foothold in the UK market, where it had previously been unsuccessful.
The deal also made Asda a wholly owned subsidiary of Walmart.
The purchase price was a premium of about 20 percent over Asda’s then-market value, and it was the largest acquisition by Walmart in more than two decades. The deal was financed through a combination of debt and equity, with Walmart investing $2.1 billion and Asda’s shareholders investing $1.2 billion.
The acquisition was widely seen as a defensive move by Walmart, as the company faced increasing competition from Amazon both in the United States and internationally. In the UK, Amazon had already established a strong presence with its Amazon Prime service, which offers free shipping on many items.
As part of the deal, Asda’s CEO Roger Burnley became CEO of Walmart UK, and Asda’s Chairman Andy Clarke remained in his role. However, Walmart announced that it would be closing dozens of Asda stores and converting them into Walmart superstores.
The deal was approved by the UK’s Competition and Markets Authority (CMA) in 2019, but it has faced criticism from some who say that it has led to job losses and store closures.
In 2018, Walmart paid $3. The deal also made Asda a wholly owned subsidiary of Walmart.
The purchase price was a premium of about 20 percent over Asda’s then-market value, and it was the largest acquisition by Walmart in more than two decades.
The acquisition was widely seen as a defensive move by Walmart, as the company faced increasing competition from Amazon both in the United States and internationally.
As part of the deal, Asda’s CEO Roger Burnley became CEO of Walmart UK, and Asda’s Chairman Andy Clarke remained in his role.
The deal was approved by the UK’s Competition and Markets Authority (CMA) in 2019, but it has faced criticism from some who say that it has led to job losses and store closures.
