Walmart seems to be ready to downsize its U.K. operations.
The retailer is reportedly selling its majority stake in the grocery chain, Asda Group, to rival grocer J Sainsbury and take a 40 percent stake in the new entity, according to the Wall Street Journal.
Asda has about 600 stores throughout the U.K. and was acquired by Walmart in 1999. It represents the retailer’s largest foreign market by revenue, according to the Journal.
The sale is viewed as a move to counter fierce local competition from Walmart’s side, while Sainsbury has been working to build out its footprint to compete with Amazon, as the Journal reports. Sainsbury says it will announce more details about the talks with Walmart on Monday. [WSJ] — Erin Hudson