Walmart weighs Asda IPO
Bentonville, Ark.-based Walmart is weighing its options to take its British supermarket chain, Asda, public.
According to CNBC, Walmart International CEO Judith McKenna told Asda staff at its mid-year meeting Tuesday in Leeds, England, that the world’s largest retailer did “not have a one size fits all approach to operating its international markets.”
However, she added: “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.”
The news comes shortly after a U.K. competition regulator blocked the mutual buyout agreement in April between Sainbury’s, Walmart and Asda, resulting in the cancelation of the multi-billion dollar transaction. The regulator concluded that the proposed merger would be unfair to British consumers, according to CNBC.
“We have concluded that there is no effective way of addressing our concerns, other than to block the merger,” said Stuart McIntosh, chair of the Competition Markets Authority.