Asda mulling flotation but move could be years away
Asda’s US owner has said it is “seriously considering” a stock market flotation for the UK supermarket chain after a deal to merge with rival Sainsbury’s was blocked.
Walmart – the world’s biggest retailer – told Asda managers at an event that it was mulling listing Asda, but that any preparations would “take years”.
Judith Mckenna, Walmart’s international chief executive, said: “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.”
She added: “Walmart does not have a one-size-fits-all approach to operating its international markets, but a consistent focus on strong local businesses powered by Walmart.”
The comments come after Britain’s competition watchdog put paid to Sainsbury’s audacious £12 billion bid to merge with Asda earlier this month. Walmart bought Asda in 1999 for £6.7bn.