Asda supplier International Produce Ltd (IPL) has been bought out for an undisclosed sum by Asda’s US parent company, global retail giant Wal-Mart.

In a brief statement, Asda told freshinfo: “From October 13, Wal-Mart has become the sole shareholder of IPL. IPL was set up in 2004 to supply Asda with fresh produce and will continue to provide this service going forward.”

IPL was established as an opportunity for two existing Asda suppliers - Geest’s English Village Salads (since bought by Bakkavör) and Thames Fruit - to redefine the supplier-buyer relationship as a dedicated Asda supply business with a sole customer, delivering a procurement plan laid out for it by the retailer.

Trade sources have disclosed that the plan all along had been for Asda/Wal-Mart to take control of IPL, adding that the fact the purchase has been made by Wal-Mart as opposed to Asda suggests that the UK retailer could stand to benefit from the greater buying power of its US parent.

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