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