Walmart is in Discussions to Sell Stake in British Supermarket Arm Asda

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Big box retailer Walmart has restarted talks with potential buyers to sell a stake in its British supermarket arm Asda.

A spokesman for the world’s largest retailer confirmed the news on Monday. Talks had previously been put on hold bakc in April due to the COVID-19 crisis.

“Walmart and Asda have restarted conversations with a small number of third-party investors who are interested in acquiring a stake in Asda and partnering with Walmart, following renewed inbound interest,” the Walmart spokesman said.

“We believe now is the right time to explore options for a third party to invest in our business to accelerate the long-term delivery of our value strategy, both in stores and online,” the spokesman added.

It was after Asda tried to combine with UK rival Sainsburys but was blocked by the competition regulator in 2019 that Walmart said it was considering a stock market listing for Asda.

In February, the retailer then said it was in talks with possible buyers of a majority stake in the group.

“There is no certainty that a transaction will happen and we will not be providing any further comments on these discussions,” the spokesman said.

Walmart purchased Leeds-based Asda in 1999. The company has said that the pandemic had “demonstrated Asda’s resilience and the key role we play in supporting different communities”.

Disclaimer: We have no position in Walmart Inc. (NYSE: WMT) and have not been compensated for this article.

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