Sainsbury’s in advanced discussions to acquire Asda from Walmart
Retail acquisition news : British supermarket company Sainsbury’s and Walmart-owned Asda Stores are reported to be in talks over a £10 billion merger deal in a move to create the largest UK supermarket chain.
The potential Sainsbury’s and Asda merger has been confirmed by the former on Saturday, reported Reuters. Sainsbury’s is currently in advanced talks to combine what are the no.2 and no.3 grocery chains in the UK.
News about the possible Sainsbury’s and Asda merger was first reported by Sky News. A clarity on the deal is expected to come about on Monday. Should it happen, then the combination of Sainsbury’s and Asda is likely to cross the grocery market share of rival supermarket chain Tesco, at nearly 30%.
It will also be the largest UK supermarket acquisition after the 2004 Morrisons acquisition of Safeway in a £3bn worth deal.
In 1999, US retail giant Walmart struck a $10.8 billion deal to buy Asda in a move to expand its global operations.
Sainsbury’s is considered to be the second largest supermarket chain in the UK and has over 1,400 stores. The British retail chain employs about 182,000 employees and is estimated to have a market share of 16.9% share in the UK supermarket sector. Its largest shareholder is Qatar Investment with a stake of 21.99%.
On the other hand, Asda, which was founded in 1949, operates over 640 stores and has about 165,000 employees.
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