Walamrt is selling the majority stake in Asda Group Ltd. to an investment group for an enterprise value of $8.8 billion.
Walmart is selling its supermarket chain Asda, which has 341 locations across the United Kingdom, and has revealed a new Store Design focusing on a digitally enabled shopping experience.
The retailer is selling the majority stake in Asda Group Ltd., Britain’s third-largest grocery chain, to an investment group for an enterprise value of $8.8 billion.
Under the new ownership structure, the Issa brothers, Mohsin and Zuber Issa, and TDR Capital are acquiring a majority ownership stake in Asda. Walmart will retain an equity investment in the business, with an ongoing commercial relationship and a seat on the board. The Issa brothers are the founders and co-CEOs of EG Group, a global convenience store retailer.
The Issa brothers, backed by TDR Capital, will support and accelerate Asda’s existing strategy, which is anchored in delivering low prices and convenience to customers however they want to shop. Asda will remain headquartered in Leeds and will continue to be led by Asda CEO Roger Burnley who will form part of Asda’s board alongside representatives appointed by the Issa brothers, TDR Capital and Walmart.
“This new ownership opens an exciting new chapter in Asda’s long heritage of delivering great value for UK shoppers,” said Burnley. “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.”
As well as accelerating Asda’s existing strategy, the Issa brothers will bring significant additional expertise, particularly in convenience retail and brand partnerships, drawing on their experience of building a global convenience retailer with more than 6,000 sites.
“We are delighted to be able to announce this deal today, which we believe creates the right ownership structure for Asda, building on its 71 year-heritage, whilst bringing a new entrepreneurial flair, not only to Asda, but also to UK retailing,” said Judith McKenna, president and CEO of Walmart International. “I’m delighted that Walmart will retain a significant financial stake, a board seat, and will continue as a strategic partner.