Asda Group Ltd., the British arm of US retailer Wal-Mart, said that it is all set to buy the UK stores of the discount supermarket group Netto for £778 million. Asda said that this move of the company would its position as the No. 2 food retailer in UK. Netto is a supermarket group from Danish chain Dansk Supermarked A/S, owned by Danish shipping container group A. P. Moller Maersk A/S.

By this move, Asda is trying to fill the strategic gap for Wal-Mart in Britain with market leader Tesco. According to the deal, Asda will acquire 193 Netto stores in UK for £778 million. Asda will convert the 193 Netto stores in Britain into Asda stores and integrate them into its new supermarket division for units smaller than 25000 square feet.

The deal is subject to regulatory approval now. Asda expects to close the deal by this summer. Asda said that it is committed to its smaller stores division and this deal is a part of its strategy to satisfy demand for its stores in a broader range of U. K. communities. "The creation of new in store jobs in a tough economy will also be a welcome boost in scores of communities across the UK," said Andy Clarke, CEO of Asda.