Asda, Britain’s second biggest supermarket chain, has been bought by the U.S. retail giant Walmart for £7.3 billion ($10.8 billion). The move gives Walmart a strong foothold in the United Kingdom’s $500 billion grocery market and marks the biggest overseas acquisition by the world’s largest retailer.
The deal, which was announced on Monday, will see Walmart take full control of Asda, which has more than 600 stores and employs around 150,000 people in the UK.
Asda will continue to operate as a separate brand and will be run by its current CEO, Roger Burnley. However, the company will be majority-owned by Walmart and will become a subsidiary of the U. retailer.
The acquisition is subject to regulatory approval in the UK and is expected to complete later this year.
This is big news for both Asda and Walmart. Asda has been struggling in recent years, with sales growth slowing down and its market share coming under pressure from rivals such as German discounters Aldi and Lidl. The deal with Walmart will give it the scale and resources it needs to compete more effectively.
For Walmart, the acquisition is a way to boost its international growth as it comes under pressure in its home market from online retailers such as Amazon. The UK grocery market is also an attractive proposition because it is relatively fragmented compared to other markets such as the United States, where Walmart already has a dominant position.
Who has bought Asda from Walmart?
Walmart has bought Asda from its parent company, Groupe Casino, for £7.
