Walmart Renews Talks To Sell Majority Stake In UK Grocery Business, Asda

Walmart (WMT) has recommenced talks over the possible sale of a majority stake in its British supermarket unit, Asda.

The talks were postponed in April so that Walmart management could focus on the dramatic impact of the COVID-19 pandemic on its operations.

"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," a 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,” Walmart and Asda said in a joint statement.

But they added there was no guarantee that such a sale will occur.

Walmart said the COVID-19 pandemic had "demonstrated Asda's resilience and the key role we play in supporting different communities.”

Earlier this year private equity firms Apollo Global Management Inc., Lone Star Funds and TDR Capital each submitted offers to acquire a stake in Asda. The discussions at that time valued Asda’s total business at more than 7 billion pounds ($8.6 billion).

Late last year British regulators prevented Walmart's plan to merge the Asda unit with U.K. supermarket chain Sainsbury’s on grounds that the deal would raise prices for consumers.

Walmart originally acquired Asda in 1999, but now is seeking to make deals in growth areas like India and China.

Based in Leeds, England, Asda controls about 15% of the U.K grocery market, but has increasingly faced increased competition from discount chains like Germany's Aldi and Lidl.