Asda purchases Netto

Source : Adam Richards

ASDA will purchase Netto Foodstores for an estimated $1.1 billion, according to an agreement signed Thursday between the two companies. ASDA, a subsidiary of US retail giant Wal-Mart, will convert the 193 Netto stores in the UK into ASDA stores after the merger is complete, under its new supermarket division umbrella for shops less than 25,000 square feet in size.

Andy Clarke, ASDA President and Chief Executive, said the acquisition will not only broaden the range of products offered by his company, but will also increase jobs. He went on to add that ASDA is expected to double the workforce at each Netto location after the takeover is complete. Clarke also said that he is looking forward to the addition of the Netto staff to the ASDA team and that ASDA customers will benefit from the merger through lower costs and increased product variety.

A spokesperson for ASDA said that all Netto stores will continue to operate under existing management until official approval of the acquisition. The spokesperson went on to say that the transaction is scheduled to be finalised by September of this year, pending approval by the Office of Fair Trading, Britain’s official regulatory governing body.