Issa Brothers Wrap Up Asda Acquisition
Brothers Mohsin and Zuber Issa, founders and co-CEOs of EG Group, a worldwide convenience retailer based in Blackburn, United Kingdom, and investment funds managed by TDR Capital LLP, a U.K.-based private equity firm, have completed the acquisition of Asda, Walmart’s wholly-owned U.K. business, for an enterprise value of £6.8 billion (U.S. $9.42 billion), on a debt-free and cash-free basis.
The deal received approval from the Financial Conduct Authority, a U.K. financial regulatory body, on Feb. 8, with all deal conditions met in full. The parties continue to work with the Competition and Markets Authority on regulatory approval, which is currently anticipated in the second quarter 2021.
The sale was revealed last October, a year after an attempted merger between Asda and rival U.K. grocer Sainsbury’s was blocked by regulators.
Bentonville, Arkansas-based Walmart operates more than 11,400 stores under 55 banners in 26 countries, and e-commerce websites, employing 2.2 million-plus associates worldwide.
Employing more than 146,000 people across the United Kingdom, Asda is a multiformat omnichannel retailer, selling its products through a network of 584 grocery stores, 18 stand-alone fuel stations and 33 Asda Living stores, as well as online. Along with grocery and general merchandise, Asda operates George, a U.K. clothing retailer with both an in-store and online offering.