Asda has announced that it is to buy the budget retailer Netto.


The deal, reportedly worth around £780m, is likely to add 193 stores to the existing Asda estate and will increase its presence in the smaller stores division.

The supermarket expects to finalise the transaction after approval from the Office of Fair Trading later this summer and to complete the refurbishment of the Netto stores to trade under an Asda fascia by the middle of 2011.

Until official approval is granted, all Netto stores in the UK will continue to operate as usual under existing management.

“Customers will benefit from low prices on a significantly broader range of quality products, complemented by the wide range of services we offer in all our smaller stores,” Asda’s chief executive Andy Clarke said.