>> British grocery retailers, Sainsbury's and Walmart's ASDA are in talk to create a supermarket behemoth. The two businesses confirmed on Saturday that they are in advanced negotiations to merge. They are the UK's second and third biggest supermarkets behind Tesco. But the combined company would leak from Tesco market share, creating a business according to one source, worth up to 15 billion pounds or $20.7 billion.
Britain's big grocery have been losing market share to German discounters Aldi and Lidl. Sainsbury's has reported profit declines for the past three years. And ASDA for the past two. Indeed, ASDA which Walmart bought in 1999, is one of the retail giants biggest and worst performing international businesses. The resources familiar with this situation, say Walmart is likely to keep the minority stake thought to be around 40%.
Sainsbury's has invited media and analysts to presentations on Monday which could indicate a done deal. But the combination still needs to get past Britain's competition regulator, the Competition and Markets Authority, given that the deal could effectively create a duopoly.