Walmart has completed the sale of its supermarket chain Asda, which has 341 locations across the United Kingdom. The retailer has revealed the sale to two British billionaire brothers and private equity firm TDR Capital, in an $8.8 billion deal, $2.3 billion less than what Walmart paid for Asda back in 1999.
The sale comes after Walmart said last year that it was mulling a future stock market listing for Asda after its attempted merger with competing U.K. grocer Sainsbury’s was blocked by regulators.
Under the new ownership, brothers Mohsin and Zuber Issa will join London-based TDR to acquire a majority ownership stake in Asda. Walmart will continue to retain an investment, with an ongoing relationship and a seat on the board.
Asda CEO Roger Burnley will continue to lead the chain.
Walmart said that based on the current deal terms, it expects to recognize an after-tax noncash loss of approximately $2.5 billion in fiscal 2021, but the deal is expected to be completed in 2022.
Bentonville, Arkansas-based Walmart operates more than 11,300 stores under 58 banners in 27 countries, and e-commerce websites, employing 2.2 million-plus associates worldwide.