Walmart to sell UK unit as it seeks growth in online sales
LONDON (AP) — Walmart has agreed to sell its British unit, Asda, to local rival Sainsbury's in a 7.3 billion pound ($10.1 billion) deal as the U.S. giant focuses on online sales in countries with higher growth and less intense competition.
The cash and stock deal will also reshape Britain's supermarket industry. It combines the No. 2 and No. 3 supermarket chains, with a total 31.4 percent share of the market that would put it ahead of the current leader, Tesco, according to data from Kantar Worldpanel.
"This is a transformational opportunity to create a new force in U.K. retail," Sainsbury's CEO Mike Coupe said in a statement. Shares in the company jumped as much as 21 percent in London.