TDR Capital To Become Majority Owner Of UK Supermarket Asda

By Reuters
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TDR Capital To Become Majority Owner Of UK Supermarket Asda

Private equity firm TDR Capital will gain majority ownership of British supermarket group Asda by acquiring Zuber Issa's share in the business, Asda said in a statement.

Buying Zuber Issa's 22.5% stake gives TDR 67.5%, with 22.5% still owned by Zuber's brother Mohsin and 10% retained by US giant Walmart Inc.

The transaction is set to complete in the third quarter of 2024.

Gary Lindsay and Tom Mitchell, managing partners of TDR Capital, said, “We first invested into Asda over three years ago, seeing a huge opportunity to cement its position as one of the UK’s leading retail brands. [...]

“As majority owners, we will continue to work closely with the Asda management team and colleagues across the business to support the ambitious strategy, which we believe is the right one to continue to move Asda forward.”


High Debt Levels

Asda, the UK's third largest grocer after industry leader Tesco and Sainsbury's, has been burdened by high debt levels since the Issas and TDR bought 90% of the business from Walmart in a £6.8 billion ($8.7 billion) deal in 2020.

Last month, Asda reported a slowdown in quarterly sales growth and an underperformance versus its bigger rivals.

Monthly industry data has shown Asda losing market share.

Asda chairperson, Stuart Rose, welcomed TDR’s increased investment in Asda, describing it as “a clear sign of its commitment to the business.”


“Asda’s heritage is in delivering great value for customers on a daily basis across its entire proposition from groceries to fashion and food-to-go – and the board has never been more committed to deliver on this promise,” he added.

News by Reuters, additional reporting by ESM.

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