FILE PHOTO: A man walks past branches of ASDA and Sainsbury’s in Stockport, Britain April 30, 2018. REUTERS/Phil Noble/File Photo
EDINBURGH (Reuters) – American private equity giant KKR is plotting a bid for Walmart’s Asda as talks for its merger with British rival Sainsbury falter on competition concerns, The Sunday Times reported.
KKR is thought to be working with former Asda boss Tony De Nunzio, now a senior adviser to the buyout firm, the report said.
The newspaper, which did not cite its sources, said Asda would have a lower valuation than the 7.3 billion pounds in the Sainsbury’s deal because there would not be the same economies of scale.
The report cited a source close to Walmart which said it was not in a rush to find a new buyer for Asda.
A spokesperson for Asda could not immediately be reached for comment.
Britain’s Competition and Markets Authority (CMA) published the preliminary findings of its probe into the deal on Wednesday, concluding that there could be a significant lessening of competition if the deal went ahead.
Reporting by Elisabeth O’Leary; Editing by Daniel Wallis