Walmart: will merge Asda with Sainsbury
(CercleFinance.com) - Walmart hqs announced an agreement to merge its British subsidiary Asda Group with UK retailer Sainsbury to create one of the UK's leading retailers in groceries, general merchandise and clothing.
Walmart would hold 42% of the new group and would receive 2,975 million pounds (subject to customary adjustments) in cash, valuing Asda at 7.3 billion pounds. However, its voting rights would be limited to 29.9%.
Based on these terms, Walmart expects to record a non-cash loss of around 2 billion dollars in its accounts. The deal's finalisation will be subject to regulatory approval, which would not be until the second half of 2019.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Walmart would hold 42% of the new group and would receive 2,975 million pounds (subject to customary adjustments) in cash, valuing Asda at 7.3 billion pounds. However, its voting rights would be limited to 29.9%.
Based on these terms, Walmart expects to record a non-cash loss of around 2 billion dollars in its accounts. The deal's finalisation will be subject to regulatory approval, which would not be until the second half of 2019.
Copyright (c) 2018 CercleFinance.com. All rights reserved.