Asda Express Manchester Oxford Road

UK-based private equity firm TDR Capital LLP is to acquire Zuber Issa’s shares in Asda, making it the majority shareholder.

The transaction, set to complete in Q3 2024, brings the ownership of Asda to 67.5% by TDR Capital, 22.5% by Mohsin Issa, and 10% by Walmart Inc.

TDR Capital had invested in Asda alongside the Issa brothers, and took majority ownership of the business in June 2021.

Managing partners of TDR Capital, Gary Lindsay and Tom Mitchell said: “We first invested into Asda over three years ago, seeing a huge opportunity to cement its position as one of the UK’s leading retail brands.”

The duo cited the expansion of Asda’s convenience estate as a highlight over the past three years. “By combining our investment and sector expertise with Asda’s heritage of delivering value for customers, we have already made significant progress in transforming Asda. We have added a scale convenience business, grown Asda’s store footprint from 623 to 1,200 stores and food-to-go sites, and launched a hugely successful loyalty app, which now has six million active customers, accounting for around half of total sales. We remain focused on investing in Asda’s stores and online, as well as its colleagues through the highest pay in the traditional supermarket sector, to drive sustainable, long-term growth.”

EG Group also confirmed that it has agreed to sell its remaining UK forecourt business and certain standalone foodservice locations for a headline consideration of £228m to Zuber Issa. Once the transaction is completed, Zuber Issa will step down as Co-CEO of EG Group, with Mohsin Issa continuing to lead the business as sole CEO. Zuber Issa will retain his existing shareholding in the company and remain on the board as a non-Executive director

Zuber Issa said he would be focusing more on forecourt sites acquired from the EG Group. “Since Mohsin and I, alongside TDR, took ownership of Asda, we have driven a period of significant investment and entrepreneurial growth activity. Notably, Asda acquired a market-leading UK convenience retail and foodservice store business from EG Group.

“With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired, and spend more time on my charitable endeavours. I am pleased to see TDR increasing its investment in Asda. With Mohsin and TDR’s ongoing focus and shareholding, I am confident that Asda will achieve its growth ambitions.”

Commenting on the move, co-owner of Asda, Mohsin Issa said: “Today’s announcement further underlines my own and TDR’s confidence both in Asda and the UK consumer market. As a shareholder group, we are excited about the growth journey we are on.

”Asda is an iconic British brand and we are committed to setting it up for long-term success and delivering great value for customers across the UK. To that end, I am incredibly proud of the investments we have already made in transforming the Asda business, including the launch of the new Asda Express convenience format, the Asda Rewards customer loyalty scheme and the £800m investment in a best in class IT infrastructure to bring new data and insight capabilities. Above all, I am proud and grateful for the everyday commitment and loyalty of our Asda colleagues and their dedication to our customers.

“I also want to add my personal support and best wishes for Zuber’s plans as we continue our successful family partnership, working as partners on our personal co-investments, family office philanthropy and Issa Foundation projects.”