Asda has been sold to a pair of British Blackburn brothers – this is what we know so far about the deal, what it means for customers, staff and who are the new owners
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The supermarket – which serves 19 million customers a week and employs more than 146,000 people – will be taken over by British brothers Mohsin and Zuber Issa and private equity firm TDR Capital
The £ 6 $ 8 billion deal comes after Asda’s attempted merger with Sainsbury’s was blocked in April last year over fears that prices would rise for buyers
Walmart International President Judith McKenna said: “We are delighted to be able to announce this agreement today, which we believe creates the right ownership structure for Asda, building on its 71 years heritage, while bringing a new entrepreneurial flair, not only to Asda, but also to retail in the UK «
The transaction still needs to be approved by regulatory authorities, but is expected to close in the first half of 2021
This means Roger Burnley will remain Managing Director and the headquarters will still be in Leeds
In fact, Walmart isn’t even quitting completely – keeping a stake in the company and a board seat with it
When businesses change hands, staff are usually transferred to the new owners along with other parts of the business
This means that nothing normally changes beyond a letter from HR and the name of the person paying – current contracts just changed
Longer term, as part of this announcement, staff were told that the new owners: « Would maintain competitive compensation levels for Asda colleagues and continue to provide interesting and rewarding employment opportunities »
Burnley said: “For Asda colleagues, a strong and growing company is important to our long-term future
« I want to thank each of our employees for the incredible work they do in serving our communities, and together we will continue to focus on building a better Asda for the benefit of all »
Great value is at the heart of what Asda stands for, with the proposed Sainsbury’s merger banned out of fear it could drive up prices for customers as competition diminishes
Although the Issa brothers don’t own any other supermarkets, they own a lot of gas stations and founded Euro Garages
The new owners have promised to: « Continue to offer low prices in its stores and product categories for its customers »
Gasoline has not been forgotten either, with a second promise: « To ensure that Asda remains a price leader in the supermarket fuels sector »
Mohsin and Zuber Issa were born in Blackburn and started their professional life helping out at their father’s gas station
From there they founded Euro Garages, expanding the business massively over the years to the point where they now have over 6,000 locations on three continents.
They divide the workload between them, Zuber being in charge of strategy and acquisitions and Mohsin managing the day-to-day affairs
Besides the experience of selling fuel and selling in gas station convenience stores, they also used partners like Starbucks, Burger King, Greggs, Subway and KFC in big box stores
In addition to fuel and convenience stores, Mohsin and Zuber also founded two charitable foundations that support individuals, communities and organizations, both nationally and internationally, with activities that promote education, health and fight against poverty
TDR Capital was founded in 2002 to invest in UK and European companies to help them grow their businesses
TDR Capital started working with the Issa brothers in 2016, merging its European branch Forecourt Retail with Euro Garages to create EG Group
Besides EG Group, he has invested in David Lloyd Leisure, Pizza Express, Stonegate Pub Group and Buffalo Grill, to name a few
Asda Stores Limited, Walmart, EG Group, Zuber Issa, Roger Burnley, UK, TDR Capital, Mohsin Issa
World news – UK – Asda wholesale to brothers UK – what this means for & customer staff
SOURCE: https://www.w24news.com
