Walmart Unit Asda Agrees to UK Merger Deal with Sainsbury. The British supermarket Sainsbury joins forces with Walmart daughter Asda in the home country. The merger company is killing Tesco from the throne when it comes to the most extensive supermarket in the United Kingdom regarding market share.
Sainsbury and Asda are currently numbers two and three after Tesco.
Walmart will receive about 42 percent of the merged entity. The Americans gain nearly 3 billion pounds for the deal, valuing Asda at 7.3 billion pounds. Walmart writes a mere 1.5 billion pounds to the supermarket chain, which took over £ 6.7 billion in 1999.
The combined company accounts for an annual turnover of 51 billion pounds. Together, the companies have around 2,800 stores. A total of 330,000 people work at the group. Sainsbury estimates the cost advantage of the combination at least 500 million pounds. No stores will be closed.
Possibly the combination still faces competition concerns.