- The combined supermarkets will beat out industry giant Tesco to become the largest food retailer in the UK with about 26% market share, Jefferies says.
- The deal is attractive but Jefferies worries there will be regulatory challenges ahead.
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Walmart's new $10 billion dollar deal is facing a big roadblock (WMT)
Walmart and J Sainsbury are teaming up to become the largest food retailer in the UK. It's one way to fight off competition if regulators give approval.
Walmart announced it will sell its UK business, Asda, to J Sainsbury in a
As Walmart reshapes its international portfolio, the deal will help reduce losses to the retail giant, he wrote. Competition has been heating up and over the last two years, the company saw close to a 24% decline in operating profit in the UK.
"The bigger picture for WMT international is getting better," Binder wrote. He says Walmart has spent the last four years selling assets, partnering with local companies and closing stores around the world to focus on markets with higher return.
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