UK discount retailer Netto has confirmed that the managing director of its UK operations, Charles Kay, has resigned from the company.

Netto was sold to Asda in a deal worth GBP778m (US$1.2bn) in May this year.

The Office of Fair Trading recently said Asda would need to sell some 47 outlets to satisfy local competition concerns.

A spokesperson from Netto declined to comment further on Kay’s decision, although it was understood that he was due to leave his post next year after overseeing the transition of the stores to the Asda banner.