TDR Capital LLP, a UK-based private equity firm, and Founders and Co-CEOs of EG Group, Zuber and Mohsin Issa have together agreed to acquire Asda, a Walmart-owned supermarket retailer, for a value of £6.8 billion, on a cash-free and debt-free basis.

Under the new ownership structure, TDR Capital and the Issa brothers are securing a majority ownership stake in Asda. While Walmart will attain an equity investment in the business, with an ongoing commercial relationship and a position on the Board.

With numerous developments in the food retail sector of the UK, the newly announced owners will continue to build a strong business foothold, taking advantage of the fresh capital and know-how, as well as links with Walmart.

The Issa brothers, supported by TDR Capital, will accelerate Asda’s current strategy, which is focused on delivering convenience and low prices to customers. In addition to this, the new ownership of Asda will help the two parties to closely work with suppliers, primarily to offer the best value to customers in the assortment of categories they mostly demand.

Speaking on the acquisition, Judith McKenna, President & CEO, Walmart International, said that the company is delighted to announce this deal, which is expected to create an ideal ownership structure for Asda, whilst building on its 71 year-heritage. The move will be bringing a new entrepreneurial flair to Asda as well as to UK retailing.

According to Roger Burnley, CEO, Asda, the newly announced ownership will open an exciting new chapter in Asda’s heritage of delivering great value to shoppers in the UK. With our joint investment, ambition and expertise, Asda, the Issa brothers, Walmart, and TDR Capital will have a significant opportunity to accelerate their existing business strategy and develop a much exciting offer for customers.

Source Credit: https://www.indiaretailing.com/2020/10/05/food/food-grocery/the-issa-brothers-and-tdr-capital-to-acquire-asda-from-walmart/