Walmart “seriously considering” IPO for Asda

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Asda Walmart
// Asda parent company Walmart “seriously considering” a stock market flotation for the UK grocer
// Walmart said that any preparations would “take years”
// The initiative comes after Asda’s proposed £12bn merger with Sainsbury’s failed

Walmart has revealed it was “seriously considering” a stock market flotation for Asda after its £12 billion proposed merger with Sainsbury’s collapsed last month.

Walmart informed Asda managers that a stock market listing was possible, but any preparations would “take years”.

“We are seriously considering a path to an IPO – a public listing – to strengthen your long-term success,” Walmart international chief executive Judith McKenna said.

In April, the Competition and Markets Authority blocked the Sainsbury’s deal, saying it would lead to increased prices in stores, online and at petrol stations across the UK.

The failure of the merger led to speculation around Walmart’s next plans for Asda.

Earlier this month, there were speculations that Walmart was mulling the sale of Asda after its proposed merger fell through.

However, speaking at the World Retail Congress in Amsterdam yesterday, McKenna said Walmart was still committed to Asda.

She also said the failed merger was a “bold” attempt to drive down prices that would have benefited millions of shoppers.

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