Walmart sells Asda in 6.8 billion pound deal

British supermarket giant Asda has been sold by Walmart to two billionaire brothers and private equity firm TDR Capital in a 6.8 billion pound (8.8 billion dollar) deal.

Under the new ownership structure, Mohsin and Zuber Issa and TDR Capital have acquired a majority ownership stake in the retailer, while Walmart will retain an equity investment in the business, with an ongoing commercial relationship and a seat on the board.

Asda CEO Roger Burnley will remain at the helm of the company, which will continue to be headquartered in Leeds.

The retailer also said more than 1 billion pounds will be invested in the next three years to further strengthen its business and supply chain.

“This new ownership opens an exciting new chapter in Asda’s long heritage of delivering great value for UK shoppers,” CEO Roger Burnley said in a statement. “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.”

Walmart CEO and president Judith McKenna 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.”

Photo credit: courtesy of George at Asda