As Walmart Inc. looks to bolster its e-commerce business, the retail giant is turning to its $3.3 billion investment in British supermarket chain Asda Group Ltd.
Walmart has been focused on Asda since acquiring a majority stake in 1999, and the move to make Asda a subsidiary last year was seen as a way to further integrate the two companies and give Walmart more control over Asda’s operations.
Now, with Amazon.com Inc.’s $13.7 billion purchase of Whole Foods Market Inc. raising the stakes in the grocery wars, Walmart is said to be considering a full takeover of Asda that would value the UK chain at more than $10 billion.
Such a move would give Walmart a bigger footprint in the UK, where it has struggled to grow its own brand amid fierce competition from local rivals such as Tesco PLC and J Sainsbury PLC. It would also give Walmart more heft in its battle with Amazon, which has been eating into Walmart’s online sales growth.
Walmart is said to be working with financial advisers on a potential deal for Asda, though no formal offer has been made and it’s not clear when or if one will be forthcoming. Asda declined to comment on “speculation” about a possible takeover.
How much does Walmart own Asda?
Walmart owns a majority stake in Asda, which is valued at more than $10 billion.
