A consortium of Zuber and Mohsin Issa and private equity firm TDR Capital will take a majority stake in Asda from Walmart in a 6.8bn deal.
The tycoon brothers, who also own the Euro Garages chain, started their empire from a terraced house in Blackburn 19-years-ago. The takeover will see the Supermarket chain return to British ownership for the first time in 20 years. The new owners have promised to invest more than £1bn over the next three years in the business and to continue to offer low prices across its stores.
Judith McKenna, chief executive officer of Walmart International said: “We are delighted to be able to announce this deal today, which we believe creates the right ownership structure for Asda, building on its 71 year-heritage, whilst bringing a new entrepreneurial flair, not only to Asda, but also to UK retailing.
Asda headquarters will remain in Leeds and the business will continue to be led by current chief executive Roger Burnley.
Roger Burnley, chief executive Officer of Asda, commented: “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. For Asda colleagues, a strong and growing business is important for our long-term future. I want to thank every single one of our people for the incredible work they do serving our communities, and together our focus will remain on building a better Asda for the benefit of all.”