Walmart Plans Path To Asda IPO 20 Years After De-Listing Supermarket
Following the collapse of its proposed merger with Sainsbury’s, Asda-owner Walmart International’s chief executive has told senior employees that the U.S.
Judith McKenna, CEO of Walmart International, the company unit that controls non-U
Ms McKenna told the managers and other senior employees who had gathered at Leeds’s First Direct Arena that an IPO was being seriously considered by
Another option for Walmart might be to sell Asda to a private equity group and there is thought to be
However, with the CMA having already blocked the Asda-Sainsbury’s merger, a private buyer would have to either come from outside of the UK or have no other major interests in the UK
The issue with an IPO is that timing would be key. Asda would need to have maintained a strong financial performance over multiple quarters and the market itself would need to be healthy. An IPO would leave Walmart with a still large position in Asda but one it would want to sell down over time. So it would want an IPO at a point in time it was confident would see the post-IPO share price remain healthy.
While Walmart dominates the bricks and mortar groceries market in the USA, its attempts at international expansion have proven far less successful. The company’s international unit now contributes 24% of total group sales but has made several expensive mistakes. Businesses in Germany and South Korea have been pulled out of in 2006 and a major joint venture in India halted in 2013. However, the company has ongoing ambitions in India and wants to focus its international efforts there and in China over coming years.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.