Asda, the Walmart-owned supermarket, is set to receive takeover bids from two private equity groups next month, according to a report from Sky News.
Apollo Global has lined up former Debenhams chief executive Rod Templeman to front its bid, according to the report, while Lone Star Funds has turned to former Asda CEO Paul Mason to lead its effort.
Asda was thwarted in an attempt last year to merge with Sainsbury’s by the competition regulator, but its US owner is reportedly still keen to move the business on though Walmart is said to want to keep a minority holding.
Both Templeman and Mason have CVs that include many of the UK’s most famous high street names, while Mason was said to be involved in a plan to buy 140 Asda stores and set up a new chain if the deal with Sainsbury’s had gone ahead.
A stock market float is one other possibility, but Asda is facing a growing threat from discount rivals and online competition from Amazon, which only this week concluded a deal with Morrisons to sell fresh, chilled and frozen groceries through its website.
Earlier this week, Asda reported its own online sales had doubled in the second quarter as sales overall rose by 3.8%.