Walmart is in talks with private equity firms about selling a majority stake in Asda.
The US retail giant confirmed the talks in a statement, although it also said that “an IPO is an attractive long-term objective for Asda”.
With Asda valued at around £5bn on a standalone basis, a full takeover would probably require a consortium, with a stake sale to a private equity house seen as a stepping stone to a flotation in a few years time.
KKR is one name in the frame.
Asda is the UK’s third biggest supermarket behind Tesco and Sainsbury’s with 633 stores and £23bn of annual sales.
A £12bn tie-up between Asda and Sainsbury’s was blocked by competition regulators last year, leaving Walmart scrambling for plan B.
