Mohsin Issa and Zuber Issa, founders of UK-based global convenience and forecourts retailer EG Group, and investment funds managed by UK-based private equity firm TDR Capital have agreed to acquire Walmart’s wholly-owned UK business Asda, for an enterprise value of £6.8 billion on a debt-free and cash-free basis, the four stakeholders recently announced.
Under the new ownership structure, the Issa brothers and TDR Capital are acquiring a majority ownership stake in Asda. Walmart will retain an equity investment in the business, with an ongoing commercial relationship and a seat on the board, a press release on Walmart’s website said.Mohsin Issa and Zuber Issa, founders of UK-based global convenience and forecourts retailer EG Group, and investment funds managed by UK-based private equity firm TDR Capital have agreed to acquire Walmart's wholly-owned UK business Asda, for an enterprise value of £6.8 billion on a debt-free and cash-free basis, the four stakeholders recently announced.#
The Issa brothers, backed by TDR Capital, will support and accelerate Asda’s existing strategy, which is anchored in delivering low prices and convenience to customers however they want to shop. Under the new ownership, Asda will continue to work closely with suppliers to provide best value ranges for customers in the categories that matter most to them.
Asda will remain headquartered in Leeds and will continue to be led by Roger Burnley who will form part of Asda’s board alongside representatives appointed by the Issa brothers, TDR Capital and Walmart.
Under its new owners, the business will invest over £1 billion in the next three years in Asda to further strengthen the business and its supply chain and increase the proportion of UK-based suppliers, increasing the volume of products like chicken, dairy, wheat and potatoes purchased from UK suppliers each year.
The transaction is subject to regulatory approvals and is expected to complete in the first half of 2021.
Fibre2Fashion News Desk (DS)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
