For the first time in twenty years, supermarket chain Asda will return to majority UK ownership. The chain, which was previously owned by US giant Walmart, has been bought by private equity firm, TDR Capital, and brothers Zubar and Mohsin Issa who own EG group. The deal is believed to have cost £6.8 billion.
Walmart’s decision to sell its majority stake comes after a failed bid to merge with Sainsbury’s which was blocked as it broke rules regarding fair competition within the industry. Walmart will retain a minority stake in the supermarket chain, which they bought for £6.7 billion in 1999.
Zubar and Mohsin Issa already have a relationship with Asda through their business EG group which owns and runs more than 5,000 petrol stations across the UK.
Walmart has said that Asda will retain Roger Burnley as Chief Executive and there are currently no plans to move the companies headquarters from its current base in Leeds. It has also been announced that, under the new ownership, Asda plans to invest £1 billion over the next three years.