Asda has been sold by Walmart (NYSE: WMT) to two billionaire Blackburn-based brothers in a £6.8bn deal.
Mohsin and Zuber Issa are petrol station tycoons and backed by TDR Capital to buy the majority stake in the supermarket.
“We are very proud to be investing in Asda, an iconic British business that we have admired for many years,” said the Issa brothers in a statement.
“Asda’s customer-centric philosophy, focus on operational excellence and commitment to the communities in which it operates are the same values that we have built EG Group on,” they added.
The deal is expected to be completed early next year.
Chief executive Roger Burnley said on the deal: “This new ownership opens an exciting new chapter in Asda’s long heritage of delivering great value for UK shoppers.”
“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 offer for our customers as well as strengthen our business for our colleagues,” he added.
The Issa brothers have committed to £1bn investment over the next three years.
Walmart will continue an equity investment in the UK’s third-largest supermarket chain.
Judith McKenna, the chief executive officer of Walmart International, said: “I’m delighted that Walmart will retain a significant financial stake, a board seat and will continue as a strategic partner.”
