The UK grocery sector is set for a big shake-up. The second largest player Sainsbury has decided to merge with third-ranked Asda (owned by Walmart). The deal values Asda at £7.3bn on a debt-free, cash-free and pension-free basis (EV/FY17 EBITDA multiple of 5.8x). Sainsbury’s will issue shares worth c.£4.3bn (based on Friday’s closing price of 269.8p) and pay the remaining amount in cash (c.£3bn) to Walmart. The US giant will hold 42% of the combined business (wit
30 Apr 2018
Sainsbury merges with Asda
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Sainsbury merges with Asda
J Sainsbury plc (SBRY:LON) | 271 -4.1 (-0.6%) | Mkt Cap: 6,422m
- Published:
30 Apr 2018 -
Author:
Nishant Choudhary -
Pages:
3
The UK grocery sector is set for a big shake-up. The second largest player Sainsbury has decided to merge with third-ranked Asda (owned by Walmart). The deal values Asda at £7.3bn on a debt-free, cash-free and pension-free basis (EV/FY17 EBITDA multiple of 5.8x). Sainsbury’s will issue shares worth c.£4.3bn (based on Friday’s closing price of 269.8p) and pay the remaining amount in cash (c.£3bn) to Walmart. The US giant will hold 42% of the combined business (wit