Walmart ‘seriously considering’ Asda stock market flotation | Business Walmart ‘seriously considering’ Asda stock market flotation | Business Posted on by admin Walmart is “seriously considering” a stock market flotation for Asda that is likely to value the business at more than £7bn after the failure of a planned merger between its British supermarket group and rival Sainsbury’s. The £7.3bn deal was blocked by the UK’s competition watchdog, which ruled last month that a merger could mean less choice and higher prices for shoppers. “The fact that an IPO is being considered suggests private equity firms are not interested at a price that will appeal to Walmart. However, an IPO also seems unlikely as future growth is likely to be limited.
“If the big four want to keep their market shares they will have to sharpen their prices in the face of rapidly expanding cost players Aldi and Lidl. The likelihood of a bleak future will not make Asda attractive to potential stock market investors. Union leaders said they had demanded an urgent meeting with Asda’s bosses to seek reassurances for staff about the future of the company. “Walmart needs to remember they are playing with people’s lives while they try to make billions on the stock market.
Click here to read the full article