In 2018, Walmart completed the sale of Asda, one of the UK’s largest supermarket chains, to a consortium of investors led by the private equity firm TDR Capital. The sale came after several years of Walmart seeking to sell or spin off Asda, which it had acquired in 1999 for $10 billion.
Walmart had originally hoped to use Asda to help it expand its international operations, but the UK chain has struggled in recent years amid intense competition from rivals such as Tesco and Sainsbury’s. Walmart has also faced scrutiny from UK regulators over its ownership of Asda, and selling the chain will allow Walmart to focus on its core businesses in the US and elsewhere.
Why have Walmart sold Asda?
There are a number of reasons why Walmart has sold Asda. Firstly, Asda has struggled in recent years amid intense competition from rivals such as Tesco and Sainsbury’s. This has put pressure on Walmart’s own operations, as it seeks to compete in the highly competitive UK market.
Secondly, Walmart has faced scrutiny from UK regulators over its ownership of Asda. This has made it difficult for Walmart to expand its operations in the UK, and selling the chain will allow it to focus on its core businesses in the US and elsewhere. Finally, selling Asda will allow Walmart to raise much-needed cash that it can invest in its other operations around the world.
Conclusion
In conclusion, there are a number of reasons why Walmart has sold Asda.
