Tue, 21 Jul 2020 | BUSINESS SALE
American grocery giant Walmart has said it has revived talks over a potential sale of its UK supermarket chain Asda. Walmart was previously seeking to sell Asda, as we reported here, before these plans were put on hold to allow the company to navigate the COVID-19 pandemic.
At the time, Apollo Global Management, Lone Star Funds and TDR Capital (reportedly working with EG Group on its bid) were all reported to have submitted first round offers and been invited to the next bidding stage of a deal that would potentially have valued Asda at over £7 million.
In a statement, Walmart said: “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.”
“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 company added that there was “no certainty that a transaction will happen”.
The company added that the COVID-19 pandemic had "demonstrated Asda's resilience and the key role we play in supporting different communities".
Walmart has been seeking to scale back its UK presence for several years as it looks to refocus on high-growth international markets such as India. Last year, a proposed merger of Asda, which Walmart acquired for £6.7 billion in 1999, with J Sainsbury was blocked by the UK’s Competition and Markets Authority.
Asda has 639 UK outlets, including 340 superstores. It has suffered disappointing sales over recent years, as the success of discount supermarkets Aldi and Lidl have threatened its status as the discount option among the UK’s “Big Four” supermarkets, alongside Tesco, Sainsbury’s and Morrisons.
In its most recent accounts, to the year ending December 31 2018, Asda reported profits of £391 million, up £90 million from a year earlier, with total assets valued at close to £5.5 billion.
Find businesses for sale here.
If you are looking for an exit, we can help!
A small team of three of us focus on sales, purchasing, and administrative tasks. The business could easily be integrated within an existing team to support higher profits.
RELOCATABLE
Specialises in sales of rare, vintage and celebrity-owned instruments, including acoustic, electric and bass guitars, as well as amplifiers, effects pedals and accessories.
LEASEHOLD
Offers an extensive range of sports, prestige and exotic vehicles to customers and clients throughout the UK. Utilises a highly experienced team to provide vehicle servicing, valeting and detailing, delivering cars on time, within budget and with a h...
LEASEHOLD
|
09
|
|
Apr
|
Topshop flagship store up for sale | COMMERCIAL PROPERTY
Topshop's flagship Oxford Street store in London is dra...
|
09
|
|
Apr
|
Gestamp’s former Washington warehouse hits the market in £6.5m auction | COMMERCIAL PROPERTY
The former Washington base of international car parts manufa...
|
08
|
|
Apr
|
Decorating contractor targets acquisitions after MBO | MBO/MBI
Scottish commercial decorating contractor Bell Group has com...
Sign up to receive our acquisition alert emails to get your FREE guide
|
17
|
|
Mar
|
Walmart closing in on Asda sale | BUSINESS SALE
American retail giant Walmart is closing in on a sale of UK ...
|
08
|
|
Aug
|
Walmart heirs favourites to buy £200m cycling brand Rapha | BUSINESS SALE
Upscale British cycling brand Rapha is set to be sold to a p...
|
07
|
|
Mar
|
Owners of David Lloyd gym chain ‘readying for sale’ | BUSINESS SALE
The private equity owners of the David Lloyd gym chain are p...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources