Motley Fool reports that Walmart has begun the second round of bidding as it looks to sell Asda Group, its UK business, which has a 15 percent market share there but has faced tough competition from discounters Aldi and Lidl that has made profitability increasingly problematic.
According to the story, "Three private equity firms are currently in the running to make bids on the brand. These include TDR Capital, Lone Star Funds, and Apollo Global Management, Inc., all three of which participated in the first round of bidding when Asda first went on the block."
It is estimated that Asda could go for the equivalent of $8.6 billion (US), in part because of real estate holdings that make it an attractive buy. Motley Fool says that Walmart will only made a deal if the bids are high enough. This is not, the story says, a fire sale.
- KC's View:
Do we file this one in "life goes on" category?