Asda, the Leeds-based supermarket retailer, could possibly be listed on the stock market after competition authorities blocked its merger with one of its competitors, Sainsbury’s. Judith McKenna, CEO of Asda’s parent organization Walmart, affirmed to staff that the company is considering such listing.
The listing could take a number of years, McKenna said at an event in Leeds, denoting uncertainties of time span.
The Competition and Market Authority had blocked the merger after determining that it would lead to elevate prices and increased prices at petrol stations and supermarkets could cause longer queues for checkout.
McKenna further explained that it is not hasting for anything, and Asda wanted to inform it has a deep interest in an IPO, thus traversing ways for a public listing that will bolster making long-lasting progress.
Walmart was intending to keep a 42 percent stake in the planned tie-up business. The Competition and Market Authority’s decision over the merger has also prompted McKenna to unveil the UK’s future operating plans for the first time.
Asda has run an effective supermarket business but since the last number of years has been pressurized by large businesses including Aldi and Lidl, which have persistently enlarged their market share for years.