Walmart Moves Ahead With Sale of Asda Supermarket Chain, Could Get $8.6 Billion

Walmart (NYSE: WMT) began the second round of bidding today for Asda, a chain of UK supermarkets owned by the U.S.-based retail titan, according to company sources. 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 Adsa first went on the block.

Asda controls approximately 15% of the British grocery market. Yet investors are also excited about the fact that Asda owns around 70% of the real estate its stores stand on as "freehold," rather than leasing it or occupying it through other arrangements. Moreover, much of this real estate is in extremely choice retail locations. According to Richard Curry, a partner at UK property consultancy Rapleys, Asda's vast parking lots also provide a purchaser with the potential opportunity to lease space to fast food restaurant, gyms, department stores, and similar businesses.

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Source Fool.com