Walmart said to have three potential buyers for Asda | Progresiv
Walmart Inc. is proceeding with the planned sale of U.K. supermarket chain Asda after attracting initial bids from three buyout firms, even as tightening credit threatens to hamper debt-fueled dealmaking, people familiar with the matter said. 
Apollo Global Management Inc., Lone Star Funds and TDR Capital each submitted first-round offers for Asda and have been invited to join the next round of bidding, the people said. A deal could value the business at more than 7 billion pounds (8.6 billion dollars), according to one of the people, who asked not to be identified because the information is private.
TDR is teaming up with its portfolio company EG Group, a British gas station owner led by billionaire brothers Mohsin and Zuber Issa, the people said. Some suitors are concerned about the possibility that the market volatility triggered by the coronavirus outbreak will hurt their access to cheap financing, and there’s no certainty they will proceed with binding offers for the business, the people said.
No final decisions have been made, and Walmart could decide to keep the business for longer if bids don’t meet its expectations, according to the people. Representatives for Apollo, Asda, EG Group, TDR and Walmart declined to comment. Lone Star didn’t immediately respond to emailed queries outside regular U.S. business hours.
U.K. antitrust authorities last year blocked Walmart’s plan to combine Asda with J Sainsbury Plc in a 7.3 billion-pound deal, saying it would lead to higher prices and less choice for shoppers.
Asda is one of the “Big Four” British grocers alongside Tesco Plc, Sainsbury and Wm Morrison Supermarkets Plc. As the most value-oriented among that group, it’s been heavily exposed to pressure from discount chains Aldi and Lidl. (www.bloomberg.com)
