Wal-Mart Stores Inc., the world's largest retailer, generates about 25 percent of its annual $405 billion sales outside the US. It bought Britain's Asda, in 1999.
Asda said on Thursday it was buying discounter Netto's 193 stores in the UK and would convert them to an Asda fascia by summer 2011.
Dansk Supermarked, majority-owned by Danish conglomerate AP Moller-Maersk, said it would now focus on expanding Netto in Scandinavia and Northern Europe.
Collins Stewart analyst Greg Lawless said the deal would help Asda to fulfil one of its main ambitious — to become a clear UK number two in food.
Asda is currently Britain's second-biggest supermarket group ahead of J. Sainsbury, but only thanks to its stronger position in non-food ranges.
The top supermarket groups in the UK have been battling to extend their reach into smaller format stores.
"It takes Asda into neighborhoods where its name will be known and that its out-of-town stores currently don't reach," Lawless said.
But Lawless added the price looked full, at an enterprise value (EV) to sales of about 1. Tesco, Britain's biggest supermarket group, trades on an EV/sales of about 0.7.
Analysts said the deal might also fuel speculation that Asda will look to buy a general merchandise retailer.
The group said last month that, as well as growing its smaller format stores, it wanted to overtake Tesco to become Britain's biggest non-food retailer.
Some analysts have suggested Asda might bid for Britain's Home Retail.
Asda said it would offer a fuller range of products in converted Netto stores, rather than the limited range sold by discounters.
Discounters like Netto, Aldi and Lidl, which dominate some continental European markets like Germany, briefly saw a surge in growth at the start of the recent recession.
But that growth has since faded as the major supermarket groups responded by stepping up promotions and introducing their own cut-price ranges, like Tesco's Discounter Brands.
Britain's top supermarkets meanwhile, which already account for more than two-thirds of all grocery sales, are trying to reach new customers with smaller format and convenience stores.
Sydbank analyst Jacob Pedersen said the deal, which will generate an accounting gain for Dansk Supermarked of around 4.6 billion Danish crowns ($759 million), was good for Maersk.
"It (the price) points to big values in the Maersk group that don't show in the balance sheet and that I mean don't show enough in the share price," he said.
At 1048 GMT, Maersk shares were up 3.9 percent at 45,600 Danish crowns.
Dansk Supermarked chief executive Erling Jensen said there were no plans to transfer money from the deal to Maersk.
"The money will be put to work. If there are any good opportunities where we are, we'll shoot the money in that direction," he said.
Asda, which was advised by Lazard, said the deal was subject to regulatory approval.