UK supermarket giants Asda, Sainsbury’s agree to merge

London, April 30 

Britain’s second and third biggest supermarket chains Sainsbury’s and Walmart-owned rival Asda have agreed to merge, both said on Monday, creating a retail king that would leapfrog current leader Tesco.

The blockbuster deal comes as the UK retail sector faces squeezed profit margins due to fierce competition from German-owned discounters Aldi and Lidl — as well as major online players like US titan Amazon.

“Sainsbury’s and Walmart Inc. are pleased to announce that they have agreed terms in relation to a proposed combination of Sainsbury’s and Asda Group Limited, a wholly owned subsidiary of Walmart, to create an enlarged business,” they said. The transaction values Asda at $10 billion. Walmart will own 42% of the combined business and also receive 2.97 billion in cash.

The combined business would have a network of 2,800 Sainsbury’s, Asda and Argos stores. — AFP