Walmart Sells Asda for $8.8 Billion
LONDON, ENGLAND - After many roadblocks and discussions, the time has finally arrived—Walmart has completed the sale of its British supermarket chain Asda. Britain’s billionaire Issa brothers and private equity group TDR Capital have bought Asda from Walmart, valuing the chain at 8.8 billion USD and providing the buyers a platform to roll out smaller stores.
“The Issa brothers have a reputation for good brand partnerships, for convenience, and for growth, and that’s really what we were interested in for Asda,” Judith McKenna, President and CEO of Walmart International told Reuters.
With this deal completed, Asda will officially be under British ownership once more for the first time since 1999 when Walmart purchased it for 6.7 billion GBP or about 8.6 billion USD.
According to McKenna’s statement to Reuters, Asda’s new owners are targeting growth by expanding into convenience shops from its large supermarket and online operations, bringing Asda more in line with market leader Tesco and Sainsbury’s. As stated in the release, the Issa brothers will invest more than one billion pounds over three years to keep prices low, develop supply chains, and invest in e-commerce in addition to convenience stores.
British retail veteran Roger Burnley will remain as CEO of Asda in a deal which ratings agency Moody’s said allows Walmart to continue to refocus its international efforts on markets with more long-term upside, such as India and China.
With the sale completed, what will Walmart’s plans be next for growth, both internationally and stateside? ANUK will report when the news surface.