Asda could be floated on stock market after failed £12bn Sainsbury's merger
Walmart – the world’s biggest retailer – tells managers it is mulling listing for its UK supermarket chain but process may ‘take years’
Walmart – the world’s biggest retailer – told Asda managers at an event on Tuesday it was mulling listing Asda, but that any preparations would “take years”.
Judith McKenna, Walmart’s international chief executive, said: “While we are not rushing into anything, I want you to know that we are seriously considering a path to an IPO – a public listing – to strengthen your long-term success.”
She added: “Walmart does not have a one-size-fits-all approach to operating its international markets, but a consistent focus on strong local businesses powered by Walmart.”
The comments come after Britain’s competition watchdog put paid to Sainsbury’s audacious £12bn bid to merge with rival Asda earlier this month.
The Competition and Markets Authority (CMA) vetoed the deal, saying it would lead to increased prices in stores, online and at petrol stations across the UK, with shoppers left “worse off” and quality affected.
The move has sparked speculation over Walmart’s plans for Asda, with rumours it may try to sell the chain, one of the UK’s Big Four supermarkets, or turn it into a subsidiary spin-off company.
Walmart bought Asda in 1999 for £6.7bn.
Asda has reported seven quarters in a row of like-for-like sales growth, but the big players are under pressure amid intense competition from German discounters Aldi and Lidl.
Asda’s like-for-like sales rose 1 per cent in its fourth quarter, with recent trading boosted by moves to slash prices, invest in own-brand products and improve its online service.