Walmart has shelved efforts to sell a majority stake in Asda so it can focus on running the business during the coronavirus pandemic.
The US retail titan had been seeking to offload a sizable shareholding in Asda following its failed merger with Sainsbury’s and was in talks with a number of interested private equity firms.
Walmart had been hoping to secure a deal that would have valued Asda at as much as $9bn.
However, according to CNBC, those discussions have been put on hold so it can free up more managerial bandwidth to run the business day-to-day during the health emergency.
It is unclear when Walmart might seek to resume the sale process.
Walmart has been considering its options for Asda for a number of years as it seeks to refocus its energies on emerging markets, such as India, where it has huge growth potential.
It had agreed to a deal that would have seen Asda merge with its big four rival Sainsbury’s, but that was kiboshed by the Competition and Markets Authority.
Walmart will now retain its 100% ownership of Asda for the immediate future as it trades through the coronavirus crisis.
The retailer is grappling with the pandemic on a global scale, with operations in 27 markets across the globe.
In its domestic market, Walmart is drafting in 150,000 new employees and paying staff a bonus to help cope with unprecedented levels of demand.
Asda is facing a similar situation in the UK and is bringing in 5,000 new recruits to help stack shelves and serve customers.
It is working with 20 national companies in industries like food services and travel “to bring in colleagues in need of work” on temporary secondments.
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