Walmart plots £7bn Asda float
ASDA’S American owner said it could float the £7bn supermarket on the London stock market.
In a meeting with 1,200 Asda managers in Leeds, Walmart International boss Judith McKenna said it was seriously considering a float.
The comments came after the Mail last week revealed Walmart’s plans to list the British business following the collapse of a proposed merger with Sainsbury’s.
Walmart bought Asda in 1999 but is looking at options after regulators blocked the Sainsbury’s tie-up. McKenna said: ‘While we are not rushing into anything, I want you to know that we are seriously considering a path to a public listing.’
McKenna, who is from Middlesbrough and previously served as Asda’s chief operating officer, has said the float plan could ‘take years’.
Bankers at Morgan Stanley are sounding out potential investors already, it was reported yesterday.
Asda has reported seven quarters of like-for-like sales growth in a row by focusing on lower prices, ownbrand products, improved stores and a beefed-up online operation.
Industry data by researcher Kantar indicates Asda is expected to report another quarter of growth when it updates on trading today.