Wal-Mart Stores Inc. is beefing up its Asda division with a deal to acquire the 193 Netto Foodstores in the UK from Dansk Supermarked.
Published reports put the purchase price at 778 million pounds, or $1.12 billion at current exchange. Wal-Mart, the world’s largest retailer, has more than $8.5 billion in cash and cash equivalents on its balance sheet.
The deal, which is still subject to regulatory approval, will allow Asda to integrate the Netto doors into its new supermarkets division and put them under the Asda banner by next summer.
“Customers will benefit from low prices on a significantly broader range of quality products, complemented by the wide range of services we offer in all our smaller stores,” said Andy Clarke, Asda’s president and chief executive officer.
For complete coverage, see Friday’s issue of WWD.