Walmart expects to post $2.5 billion non-cash loss on Asda sale

Business

Walmart Inc WMT.N expects to record a non-cash loss of about $2.5 billion this fiscal year due to the sale of its British supermarket chain Asda, the retailer said on Friday.

Mohsin and Zuber Issa, the billionaire brothers who founded petrol station operator EG Group, and private equity firm TDR Capital said earlier in the day that they would buy Asda from Walmart for $8.8 billion.

Walmart earnings are expected to be diluted by about 25 cents per share in the first full year following the completion of the transaction – expected in the first half of fiscal 2022, the company said in a regulatory filing.