The takeover of Asda by the Issa brothers and TDR Capital has been completed.
According to a statement issued by Walmart, Asda, the Issa brothers and TDR Capital, the brothers and private equity outfit TDR have now completed the purchase for an enterprise value of £6.8 billion on a debt-free and cash-free basis.
The Issa brothers and TDR Capital have acquired a majority ownership stake in Asda, while Walmart will retain an equity investment in the business, with an ongoing commercial relationship and a seat on the board.
The transaction received approval from the FCA on 8 February 2021 and all deal conditions have been met in full, the parties said. They added that they are continuing to work constructively with the Competition & Markets Authority on regulatory approval, which is currently expected in the second quarter of 2021, adding that they 'remain confident of a positive outcome'.
Under its new ownership Asda will remain headquartered in Leeds and will continue to be a significant contributor to the UK economy and tax base, they stressed. The business will continue to be led by chief executive Roger Burnley, who will form part of Asda’s board alongside representatives appointed by the Issa brothers, TDR Capital and Walmart.
Speaking in October, Burnley said of 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.
'In a constantly changing retailing 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. I want to thank every single one of our people for the incredible work they do serving our communities, and together our focus will remain on building a better Asda for the benefit of all.”
