Issa Brothers, TDR Capital To Acquire Asda Group From Walmart In £6.8 Bln Deal

U.K.-based Issa brothers and private equity firm TDR Capital on Friday agreed to acquire supermarket chain Asda Group Ltd., owned by U.S.-based retail giant Walmart Inc. (WMT), for an enterprise value of 6.8 billion British pounds, on a debt-free and cash-free basis.

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

The transaction, subject to regulatory approvals, is expected to complete in the first half of 2021.

The two buyers are expected to bring significant expertise in convenience retail and brand partnerships to help Asda serve a wider base of UK shoppers. They are looking to invest over 1 billion pounds in the next three years in Asda to further strengthen the business and its supply chain.

The existing Asda management team will continue to drive the current growth strategy, with ongoing access to Walmart’s global sourcing scale and innovation. They will continue to offer low prices across its stores and product categories for its customers to remain a price leader in the supermarket fuel sector.

With support from its new ownership, Asda will continue to invest in accelerating its omnichannel offer and in the resilience of its supply chain, including sourcing more food from UK farmers and maintaining its commitment to supporting domestic suppliers and small businesses.

Asda will remain headquartered in Leeds, from where it built its heritage and roots, and will continue to be a significant contributor to the UK?economy and tax base.

The business 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.

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