Walmart Inc. (NYSE: WMT) has agreed to the sale of the company’s UK business for £6.8 Billion to investment funds managed by TDR Capital LLP and the Issa Brothers. Issa Brothers and TDR Capital will acquire a majority stake in Asda as Walmart will retain an equity investment in the business with an ongoing commercial relationship and a seat on the Board.
Asda will continue to invest in its business that proved resilient during the coronavirus pandemic such as its supply chain, increased sourcing of food from UK farmers and maintaining its commitment to supporting domestic suppliers and small businesses.
Current CEO of ASDA, Roger Burnley will retain his position with the current management team.
Judith McKenna, President and Chief Executive Officer of Walmart International, said: “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. I’m delighted that Walmart will retain a significant financial stake, a board seat, and will continue as a strategic partner. Asda has been a powerhouse of innovation for the rest of the Walmart world, and we look forward to continuing to learn from them in the future. This important combination will continue to keep customers and colleagues at Asda’s heart, which is important to us all.”
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 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.”
Mohsin and Zuber Issa said: “We are very proud to be investing in Asda, an iconic British business that we have admired for many years. 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. Asda’s performance through the COVID-19 pandemic has demonstrated the fundamental strength and resilience of the business, and we are excited to support Roger and his team as they continue to reposition the business to drive long-term growth.