Asda, one of Britain’s biggest supermarkets, is being sold to the owner of the world’s largest retailer, Walmart. The US company said the deal would create “significant value” for its shareholders.
The move comes as the UK’s grocery market is undergoing a major shake-up, with German discounters Aldi and Lidl gaining market share.
The deal values Asda at £7.3bn ($9.5bn) and will see Walmart own 62% of the combined business, with the rest owned by UK pension funds.
Asda has about 631 stores in the UK and employs about 150,000 people. It is the third-largest supermarket chain in the country, behind Tesco and Sainsbury’s.
The deal is subject to regulatory approval but is expected to complete later this year.
Walmart said it would keep Asda’s headquarters in Leeds and that it was committed to investing in the UK.
As part of the deal, Walmart’s international president and chief executive, Judith McKenna, will become chairwoman of Asda.
Ms McKenna said: “This transaction will create significant value for our shareholders and provide an opportunity to accelerate our strategy.”
The deal comes as Supermarkets in the UK are facing stiffer competition from German discounters Aldi and Lidl, which have been gaining market share. Tesco, Britain’s biggest supermarket chain, has also been losing market share to its rivals.
The move by Walmart to buy Asda will help it compete better against its rivals in the UK grocery market. The deal is subject to regulatory approval but is expected to complete later this year.
