Supermarket giant Walmart has entered into an agreement to sell UK grocery chain Asda to Issa Brothers and TDR Capital for £6.8 billion ($9.1 billion).
The acquisition will return the chain to UK ownership following its acquisition by Walmart for £6.7 billion ($8.9 billion) in 1999.
According to sources, the new owners joined together to acquire an equal ownership stake in Asda, and they intend to invest more than £1 billion ($1.3 billion) in the business over the next three years.
Issa Brothers co-owners Mohsin and Zuber Issa commented: “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”.
Roger Burnley, Chief Executive Officer of Asda, 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”.
The transaction is subject to regulatory approvals and is expected to complete in H1 2021.
Source: FoodBev / Asda