Walmart Inc. WMT, +0.40% confirmed Tuesday it is considering an initial public offering for its Asda subsidiary in the UK, according to a report. Bloomberg News reported that the retailer told employees in Leeds that executives are “seriously considering” an IPO, but that preparations could “take years.” Walmart had struck a deal to merge Asda with J. Sainsbury PLC SBRY, +0.68% but the merger was struck down by the UK’s Competition and Markets Authority earlier this year. Walmart shares gained about 0.4% in after-hours trading Tuesday.

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