A sale of Asda could be agreed later this week by parent company Walmart, it is understood.

The sale of a majority stake in Asda by parent Walmart drew nearer after suitors Apollo Global Management and Lone Star Funds made offers valuing the grocer at approximately £6.5bn, the Mail on Sunday reported.

Walmart, which is expected to retain a stake in Asda, decided to offload the business after a planned merger with rival Sainsbury’s was scuppered on competition grounds.

The two rival bidders for Asda have both brought high-profile retailers on board. Apollo is working with Rob Templeman, the former chief executive of department store Debenhams and retailers including Halfords and Harveys. Lone Star has enlisted former Asda and Matalan boss Paul Mason. 

A decision on the future of Asda could be made by Friday, it is thought.

Other potential Asda bidders, such as petrol forecourt specialist EG Group, are understood to have decided not to proceed with offers for Asda.

Asda, which has 633 stores, has been owned by Walmart since 1999 when the US powerhouse trumped an offer from Kingfisher.

Asda has recently developed a range of initiatives. It will test a new convenience store format, Asda On The Move, in partnership with EG Group, and in a tie-up with B&Q , the DIY giant will open shop-in-shops in four of the grocer’s superstores. 

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