The second largest chain of supermarkets in the United Kingdom, J Sainsbury Plc announced that it is planning to acquire Walmart Inc’s Asda for $10 billion. The deal would transform the country’s supermarket industry.

The UK’s supermarket will roughly pay Walmart 2.98 billion pounds in cash and 4.3 billion pounds in stock. Further, the organization said Walmart would get a 42% stake in the merged entity.

The acquisition will shape a dynamic new player in UK retail with an outstanding breadth of products. The retail sector is going through significant and rapid change which led to increased competition across grocery and other sectors. Together, Sainsbury and Asda will result in a more competitive business that will be better able to invest in quality along with range, price, and technology.

Kevin O’Byrne, Chief Financial Officer stated that the two businesses are complementary in terms of geography and that consumers would benefit from lower prices because of the company’s greater scale.

Sainsbury Chairman, David Tyler said, “We believe that the combination of Sainsbury’s and Asda will create substantial value for our shareholders and will be excellent news for our customers and our colleagues. As one of the largest employers in the country, the combined business will become an even greater contributor to the British economy.”

Further, David added, “The proposal will bring together two of the most experienced and talented management teams in retail at a time when the industry is undergoing rapid change. We welcome Walmart as a significant shareholder and look forward to working closely with them.”