Announcement Regarding Proposed Merger of Asda and Sainsbury’s

LEEDS, England & BENTONVILLE, Ark.–(BUSINESS WIRE)–The UK Competition and Markets Authority (CMA) has today published its
Final Report on the proposed merger of Asda and Sainsbury’s, resulting
in prohibition of the merger.

Despite the clear customer benefits of the proposed merger, as a result
of the CMA’s findings, Asda, its parent Walmart and Sainsbury’s have
mutually agreed to terminate the transaction.

Commenting on the proposed merger of Asda and Sainsbury’s, Judith
McKenna, CEO of Walmart International, said:

“We have been clear from the beginning of the proposed merger about
two things. Firstly, that retail is rapidly changing and standing still
is not an option, and secondly that we will always ensure our
international markets are strong local businesses powered by Walmart.

The UK remains one of the most competitive retail markets in the
world and Asda’s seven consecutive quarters of year-on-year growth show
it is a strong business with a clear strategy and focused leadership.

It was against that backdrop that we decided to explore the proposed
merger with Sainsbury’s – an opportunity which would have further
strengthened the Asda business and delivered real benefits for UK
customers.

While we’re disappointed by the CMA’s final report and conclusions,
our focus now is continuing to position Asda as a strong UK retailer
delivering for customers. Walmart will ensure Asda has the resources it
needs to achieve that.

I would like to personally thank and recognize Roger and the entire
Asda team for their incredible focus and approach during the merger
process. They have had the customer at their heart at every step, and I
know they will continue to do so.”

Roger Burnley, CEO of Asda, commented:

“Asda’s DNA is delivering low prices for hard working families and
that will never change. We were right to explore the potential merger
with Sainsbury’s, which would have delivered great benefits for
customers and supported the long term, sustainable success of our
business. We’re disappointed with their findings but will continue to
find ways to put money back into customer’s pockets and deliver great
quality and service in an ever changing and demanding market. I have
always been hugely aware that the last year has been an unsettling time
for all of our colleagues and am immensely grateful for their commitment
and dedication during that time. Our focus is now on the most important
job we all have – delivering for our customers.”

About Walmart

Walmart Inc. (NYSE: WMT) helps people around the world save money and
live better – anytime and anywhere – in retail stores, online, and
through their mobile devices. Each week, over 275 million customers and
members visit our more than 11,300 stores under 58 banners in 27
countries and eCommerce websites. With fiscal year 2019 revenue of
$514.4 billion, Walmart employs over 2.2 million associates worldwide.
Walmart continues to be a leader in sustainability, corporate
philanthropy and employment opportunity. Additional information about
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About Asda, a wholly owned subsidiary of Walmart

Asda is a UK retailer founded in 1949 serving around 19 million
customers a week and currently employs more than 146,000 people across
the UK. It has a multi-format, omni-channel offering, selling its
products through a network of 584 grocery stores, 18 standalone petrol
filling stations and 33 Asda Living stores and also online. In addition
to grocery and general merchandise, Asda also operates George, a leading
UK clothing retailer with both an in-store and online offering. The
company has a significant property portfolio, of which 75 percent of the
square footage is freehold.

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