Walmart Contemplating Selling its Stake in Asda

U.S based retailer Walmart Inc. (WMT) announced it’s currently engaging with parties interested in purchasing its stake in Britain based supermarket Asda.

The two companies made the sentiments during a joint press statement held on Wednesday acknowledging ongoing talks with small suitors with inbound interest. However they said no decision had been reached yet.

“We are currently considering whether there is an opportunity for a third party to invest in Asda, alongside Walmart, in order to support and accelerate the delivery of Asda’s strategy and position Asda for long term success,” said both companies in the joint statement.

The companies claim the interested investors are solely interested in growing Asda’s market share in Britain.

In recent times, Asda has been rapidly losing its market share in Britain to German-owned discounters Aldi and Lidl. The retailer is opening more new stores across Britain.

Sources directly linked to the matter disclosed in the event the deal sails through Walmart will still retain minority stake in Asda.

Privately owned Asda has been contemplating going public among its top goals. The company’s CEO Roger Burnley said it’s very much possible they will be having an initial public offering within the next two years.

On the other hand, Walmart supported the initiative claiming going public is still at top of Asda’s priorities.

“Asda is a great business with a clear strategy for the future and Walmart is committed to ensuring it has the resources and support it needs to deliver that strategy,” said Walmart.