The billionaire brothers behind one of Britain’s biggest gas station operators bought Asda from Walmart for £ 6 Billion deal
Sky News exclusively revealed earlier this week that a consortium led by Mohsin and Zuber Issa, the bosses of Blackburn-based EG Group and TDR Capital, the London-based private equity firm, had been selected by the American distribution giant bidding to take over the supermarket chain
Walmart will retain a capital investment in the business, with an ongoing business relationship and a seat on the board
Asda will remain based in Leeds and will continue to be led by current CEO Roger Burnley
The sale brings Asda back under British ownership for the first time since 1999, when Walmart paid £ 6.7 billion for the company
The new owners have pledged to invest more than £ 1billion in the business over the next three years and continue to offer low prices in its stores
The takeover was hailed by Chancellor Rishi Sunak, who tweeted: « It’s great to see @asda return to British majority for the first time in two decades today
« The new owners have already pledged to invest over £ 1billion over the next three years and increase the proportion of UK-based suppliers I wish them good luck »
The deal comes more than two years after Walmart planned a merger of the UK chain with rival Sainsbury’s, which was ultimately sabotaged by competition regulators
Mohsin and Zuber Issa said in a statement: « We are very proud to invest in Asda, an iconic UK company that we have admired for many years
« Asda’s customer-centric philosophy, focus on operational excellence and commitment to the communities in which it operates are the same values on which we have built EG Group
« Asda’s performance during the COVID-19 pandemic demonstrated the foundational strength and resilience of the business, and we are delighted to support Roger and his team as they continue to reposition the business to boost long-term growth
« We believe that our experience with EG Group, including our expertise in convenience and branding partnerships and our successful partnership with TDR Capital, can help accelerate and execute this growth strategy
« After a successful period at Walmart, we look forward to helping Asda build a differentiated business that will continue to serve customers brilliantly in communities across the UK »
M Burnley said: « This new property opens an exciting new chapter in Asda’s long legacy of providing great value to UK buyers
« 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 offering for our customers as well as strengthen our activities for our colleagues
« In an ever-changing retail environment, our new ownership will further strengthen our resilience, while creating significant additional opportunities to drive growth
Gary Lindsay of TDR Capital said: “Asda is a strong and well managed company with one of the UK’s biggest retail brands
« We are proud to invest alongside Mohsin and Zuber, who have made EG Group a global convenience retailer and who will now put this experience to work for Asda »
Walmart boss Judith McKenna said: « I am delighted that Walmart will retain a significant financial stake, a seat on the board of directors and continue as a strategic partner
« Asda has been an innovative force for the rest of the Walmart world, and we look forward to continuing to learn from them in the future
« This important combination will continue to keep customers and colleagues at the heart of Asda, which is important to all of us »
The sale, which is subject to regulatory approvals, is expected to close in the first half of next year
Meanwhile, the GMB union called to reassure more than 100,000 workers after the announcement
Country manager Roger Jenkins said: « We will speak to consortium representatives as soon as possible after the takeover and seek confirmation of improved relationship between GMB and Asda
« They have had enough uncertainty and need to know that their future is safe and secure »
© 2020 Sky France
Asda Stores Limited, Walmart, EG Group, Zuber Issa, TDR Capital, Roger Burnley, Mohsin Issa, United Kingdom
News from around the world – UK – Asda acquired from Walmart by € 6 British billionaire brothers 8 billion deal
SOURCE: https://www.w24news.com
