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Walmart sells ASDA for $8.8 billion

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Miguel A. Rodriguez
Miguel A. Rodriguez
05 October 2020
Walmart sells underperforming UK business

After becoming one of the largest retailers in the US, Walmart was looking to conquer the international markets. But not everything in business goes according to plan.

Starting this week, Walmart will begin selling its #UK operation, or #ASDA, as it is known, to a private entity. The entity is a group of equity buyers led by Mohsin and Zuber Issa. ASDA will be acquired for £6.8 billion ($8.8 billion). Despite the selling, Walmart will hold a seat in the ASDA board, and an undisclosed equity stake in the business after the deal comes through.

ASDA is one of the oldest acquisitions made by Walmart. In 1999 it was bought for £6.7 billion, but as time went by, the American company had a hard time competing in the UK grocery market. 

This is not the first business to be sold by Walmart. In 2018 it sold an 80% stake in its Brazilian unit to Advent International for $4.5 billion. 

Both then and now, analysts believe that it is a move that allows Walmart to focus on more promising markets.

Following the news, Walmart's stock price went up more than 1%.

Sources: thestreet.com, fortune.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.