Asda, the British supermarket arm of Walmart that is set to be acquired by Sainsbury’s, reported a fourth straight quarter of sales growth, saying its recovery under new management was gaining momentum.
The planned merger between Sainsbury's and Asda, the UK arm of Walmart, sent shockwaves through British retail stocks on Monday as investors sought to adjust to a potentially game-changing overhaul of the industry.
Sainsbury's has announced that it will buy Asda with the latter's owner Walmart taking a big stake in the combined firm. And both chains will continue, which means the Tu Clothing and George lines will carry on too.
The UK retail sector was shocked at the weekend on news that two key supermarket names could merge. And if Sainsbury’s and Wal-Mart's Asda do merge, it would join up two of the most prominent fashion brands too.
Sainsbury’s has been mulling a takeover bid for embattled Mothercare, and while analysts think a deal unlikely, they see it as a prime target given its plunging share price and well-publicised cash flow problems..
Britain’s No.2 supermarket group said it needs at least a year’s notice to figure out how it would deal with new European Union-UK trading arrangements that would come into play when the Brexit transition period ends.