Walmart could pursue IPO of Asda division
Walmart Inc.[NYSE:WMT] is looking into the possibility of spinning off its Asdadivision, and could pursue an initial public offering for the unit, according to a newswire report.
Bloomberg cited people familiar in reporting the news today, noting that the exploration comes following the collapse of plans to join the unit with J Sainsbury Plc [LON: SBRY]. The merger would have created the biggest supermarket chain in the UK. The merger was blocked by antitrust regulators, the article noted.
Bloomberg reported that Walmart is not under immediate pressure to make a decision on Asda, as its performance has improved recently.
The article reported that Walmart could revisit the possibility of selling Asda, and one source told Bloomberg that Walmart could decide to retain the business.
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