Asda owner Walmart puts stake in supermarket up for sale

ASDA'S parent US company Walmart is in discussions to sell a chunk of its stake in the UK supermarket business.

Walmart has attempted to sell Asda for nearly two years, including as part of its failed merger with Sainsbury's, to free up cash to send back to the US.

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The Competition and Markets Authority slapped a ban on the supermarket giants' proposed tie-up last year following concerns it would push prices up.

But now Walmart has confirmed it's in early talks with interested parties - namely a handful of undisclosed private equity firms - to sell its stake.

If a sale is agreed, it is understood the US giant, which is the biggest retailer in the world, will still keep hold of a significant minority stake in Asda.

A joint statement by Walmart and Asda said: "Following inbound interest Walmart and Asda can confirm that we are currently considering whether there is an opportunity for a third party to invest in Asda, alongside Walmart, in order to support and accelerate the delivery of Asda's strategy and position Asda for long term success."

After Asda and Sainbsbury's failed merger Walmart also considered floating Asda on the stock market for the first time in 21 years.

This would give shoppers the chance to buy shares in the supermarket.

The company said at the time: "Walmart firmly believes that an IPO (initial public offering) [when a company lists itself on the stock market] is an attractive long-term objective for Asda."

Walmart today added: "Asda is a great business with a clear strategy for the future and Walmart is committed to ensuring it has the resources and support it needs to deliver that strategy."

The supermarket has more than 600 stores across the UK. Use to find your nearest.

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Asda is reportedly planning to open a new Costco-style cash and carry warehouse.

meanwhile, the supermarket became the first to open Greggs counters inside stores in five locations earlier this month.

And only today, the supermarket cut 2p a litre of petrol and diesel prices.