Walmart will sell a majority stake in the UK-based grocery retailer Asda to the Issa brothers, the co-CEOs of EG Group, and TDR Capital for an enterprise value of $8.8 billion. The Issa brothers and TDR Capital will acquire equal shareholdings, while Walmart will retain an equity investment in the retailer with an ongoing commercial relationship and a seat on the board.
The new owners will continue to invest in Asda’s omnichannel offerings and support its online operations, which nearly doubled in a matter of months after the pandemic caused a spike in ecommerce sales. Asda will commit more than $1.3 billion in the next three years to strengthening its business and supply chain.
The retailer also will source more food from UK farmers and maintain its commitment to supporting domestic suppliers and small businesses. Goals include increasing the volume of domestic chicken, dairy, wheat and potatoes purchased each year, as well as working toward sourcing 100% British beef.
“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,” said Roger Burnley, CEO of Asda in a statement. “In a constantly changing retailing environment, our new ownership will further enhance our resilience, whilst creating significant additional opportunities to drive growth.”
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