Walmart sells majority Asda stake to the Issa brothers
Walmart has sold its Asda supermarket chain to EG Group founders the Issa brothers for £6.8 billion.
The deal will see the brothers and investment funds managed by private equity firm TDR Capital acquire a majority stake in Asda, although Walmart will retain an equity investment in the business and have an ongoing commercial relationship and seat on the board.
In a statement, Asda said the new owners will invest over £1 billion over the next three years in strengthening the business and its supply chain. This will include sourcing more food from UK farmers.
Asda will retain its Leeds headquarters and will continue to be led by chief executive Roger Burnley who will also sit on its board.
The supermarket said it will benefit from the Issa brothers’ significant experience of convenience retail and brand partnerships and that it will now be working to build a differentiated operating model to drive longterm growth.
Burnley said: “This new ownership opens an exciting new chapter in Asda’s long heritage of delivering great value for UK shoppers. With our combined investment, expertise and ambition; Asda, Walmart, the Issa brothers and TDR have an incredible opportunity to accelerate our existing strategy and develop an even more exciting offer for our customers as well as strengthen our business for our colleagues. In a constantly changing retailing environment, our new ownership will further enhance our resilience, whilst creating significant, additional opportunities to drive growth. ”
Mohsin and Zuber Issa added: “We believe that our experience with EG Group, including our expertise around convenience and brand partnerships and our successful partnership with TDR Capital, can help to accelerate and execute that growth strategy. After a successful period as part of Walmart we are looking forward to helping Asda build a differentiated business that will continue to serve customers brilliantly in communities across the UK.”
