Combination of J Sainsbury's and Asda Group, a wholly owned subsidiary of Walmart

J Sainsbury and Walmart have agreed terms in relation to a proposed combination of Sainsbury's and Asda Group, a wholly owned subsidiary of Walmart, to create an enlarged business. The Combination would result in Walmart holding 42% of the issued share capital of the Combined Business and receiving £3bn of cash (subject to customary completion adjustments), valuing Asda at approximately £7.3bn on a debt-free, cash-free and pension-free basis. J Sainsbury and Asda combination was blocked by UK regulators. “This is a transformational opportunity to create a new force in UK retail, which will be more competitive and give customers more of what they want now and in the future. It will create a business that is more dynamic, more adaptable, more resilient and an even bigger contributor to the UK economy." Mike Coupe, Sainsbury Chief Executive Officer.