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TDR, Issa brothers bag Walmart’s Asda

TDR Capital has won a £6.8 billion bid for supermarket chain Asda alongside billionaire brothers Mohsin Issa and Zuber Issa.

(Image courtesy of Asda)

TDR Capital has secured a £6.8 billion (about $8.7 billion) acquisition of Walmart’s UK supermarket chain Asda alongside billionaire brothers Mohsin Issa and Zuber Issa.

TDR was not the only PE suitor for the business. Last month, it was reported that Apollo Global Management was a front-runner for a deal that valued Asda at £7 billion. US firm Lone Star also submitted an offer but pulled out of the auction as it was reportedly unable to match rival bids. The new investors will take an equal share of a majority stake and plan to invest £1 billion over the next three years.

The auction process for Asda has been ongoing for several months. Its current owner, Walmart, decided to sell a stake after a planned £7.3 billion merger with peer Sainsbury’s fell through last year due to competition concerns. Talks were then postponed in April due to COVID-19 before restarting in July. Walmart bought Asda in 1999 for £6.7 billion and will retain a minority stake and a seat on its board.

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    Written by Leah Hodgson
    Leah Hodgson is a London-based senior reporter for PitchBook covering venture capital across Europe and the Middle East. Leah graduated from the University of Surrey with a BA in international politics with French. She has previously been a radio reporter in France. She later turned to financial journalism, covering the wealth management industry. She joined PitchBook in 2018.
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