Walmart agrees to sell Asda to billionaire petrol station tycoons for £6.8bn

Supermarket chain to be sold to group led by Mohsin and Zuber Issa

For the first time in two decades Asda will be under British ownership (Reuters)

Walmart has agreed to sell supermarket giant Asda to a group led by billionaire petrol station tycoons Mohsin and Zuber Issa in a £6.8bn deal.

The  Lancashire-based brothers behind petrol forecourt firm EG Group teamed up with private equity company TDR Capital to make the bid. 

The deal brings Asda back into British ownership after more than 20 years as part of US giant Walmart. 

Asda’s new owners have committed to keeping the retailer's headquarters in Leeds and said they will invest to grow its convenience and online operations. Walmart will keep a minority stake in Asda and a seat on the board.

Walmart has been looking to offload Asda for some time. The budget supermarket has been in a tough battle with Lidl and Aldi, which have rapidly grown their market share.

Friday’s announcement comes more than a year after a proposed merger between Asda and  Sainsbury’s was blocked by competition regulators who said the combined firm would reduce choice for consumers.

Roger Burnley, chief executive officer of Asda, said: “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.

“In a constantly changing retail environment, our new ownership will further enhance our resilience, whilst creating significant, additional opportunities to drive growth.

“For Asda colleagues, a strong and growing business is important for our long-term future.”

Roger Jenkins, national officer for the GMB union, called on Asda’s new owners to commit to not making redundancies.

“We welcome their commitment to British suppliers and producers, and supporting British industry and jobs,” he said.

“The new owners must offer sound reassurances to more than 100,000 Asda workers.  

“They have had enough uncertainty and need to know that their futures are safe and secure.  

“The new owners must recognise that Asda is a profitable well-run company, thanks to our members’ commitment and hard work – particularly through the Covid pandemic.”