Danish Company Sells U.K. Supermarket Unit to Wal-Mart’s Asda
June 01, 2010
American-owned U.K. retailer Asda Group Ltd. announced Thursday that it had reached an agreement with Dansk Supermarked A/S to purchase its subsidiary, Netto Foodstores Ltd., for $1.1 billion. The deal is subject to regulatory approval in Britain, but Asda said it expects to finalize the transaction later this summer and to complete the transition of the Netto stores by the middle of 2011. The transaction will enable Asda to convert Netto’s U.K. locations into Asda stores and integrate them into its new supermarkets division for units with fewer than 25,000 sq. ft. Averaging 8,000 sq. ft., the 193 Netto stores in the United Kingdom will continue operations under existing management until Asda receives official approval.