Asda has bought Netto’s UK business from its Danish owners. The deal, believed to be worth £778m, is subject to approval from the Office of Fair Trading, but Asda expects to have completed it by late summer. 

Asda plans to refurbish all Netto’s UK stores and have them trade under its own fascia by mid-2011. 

The acquisition of 193 stores, averaging 8,000 sq ft, represents a massive acceleration of Asda plans to roll-out smaller supermarkets. It has 22 stores under 25,000 sq ft, and former CEO Andy Bond told analysts last month Asda wanted to increase this to 100 within five years. Asda will employ up to twice as many staff compared to Netto in each store.