The acquisition of Asda by service station group EG and investor TDR Capital is a fact. Owner Walmart will receive 6.8 billion pounds (7.5 billion euros) for the British supermarket group.
Walmart keeps a grip
The favourite has made it in the Asda takeover battle: the British Issa brothers, founders of EG, and TDR Capital are taking over the supermarket chain together for 6.8 billion pound (7.5 billion euros), excluding cash and debts. Mohsin and Zuber Issa and TDR will each take an equal stake in the food retailer.
However, Asda does not cut its links with Walmart: the American supermarket giant holds a "substantial" financial participation, a seat on the Board of Directors and a commercial cooperation agreement. The British retailer will continue to use Walmart's central buying office and will also be able to call on innovations and expertise from the US.
More convenience and local
The current management of the supermarket chain remains in place, but the new owners already want to set their own accents. As operators of petrol stations and petrol shops, the Issa brothers bring with them, according to Asda, interesting experience in convenience retail, fuels and brand relationships, which the retailer wants to make use of. The acquirers also promise to work more with UK suppliers and invest at least a billion pounds in the business and its supply chain over the next three years.
"We believe that our experience with EG Group, including our expertise around convenience and brand partnerships and our successful partnership with TDR Capital, can help to accelerate and execute the growth strategy. After a successful period as part of Walmart, we look forward to helping Asda build a differentiated business that will continue to brilliantly serve customers across all communities in the UK", Mohsin and Zuber Issa state. However, the acquisition is still awaiting regulatory approval and is expected to be completed in the first half of 2021.