- TDR Capital has announced it will become the majority owner of Asda
Zuba Issa, who acquired Asda in 2021 with his brother Moshin and TDR Capital, is selling his stake in the supermarket to a private equity firm.
The London-based buyout company announced yesterday that it will become the majority owner of Asda, while Mohsin Issa still holds 22.5 per cent.
The Blackburn brothers have a combined net worth of more than £5 billion.
It comes after Mohsin left his wife of 30 years and began a relationship with a respected accountant.
The brothers developed their business empire from humble beginnings in Lancashire. The Issas faced scrutiny after buying Asda from US retail giant Walmart – which retained a 10 per cent stake – for £6.8bn.
The supermarket chain has been saddled with billions of pounds of debt since the brothers took over in 2021.
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The Issas have previously been grilled by MPs on the Trade and Commerce Committee over the company’s complex ownership structure.
And Asda last month reported a slowdown in sales as it underperformed its bigger rivals and lost market share.
The Asda Issas buyout was backed by TDR, which is also a major investor in the EG Group brothers’ petrol station chain after buying a 50 per cent stake in 2015.
Founded in 2002, TDR is one of the most ruthless private equity firms in the UK.
It was also announced yesterday that Zuber (51) will step down as co-CEO of EG Group.
Using part of the proceeds from the Asda deal, it bought its UK forecourt business – around 30 petrol stations – and several food outlets for £228m.
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EG Group said it would use the cash to pay down debt and strengthen its balance sheet.
Zuber will retain his stake in EG Group and continue as a non-executive director, while Mohsin, 52, will become sole chief executive.
The brothers have denied a family feud and Mohsin yesterday sought to dispel rumors of a sibling fight.
He previously dismissed rumors of a rift, telling the BBC the pair “get on extremely well”.
Yesterday, Mohsin said: ‘I want to add my personal support and best wishes for Zuber’s plans as we continue our successful family partnership, working as partners on our personal joint investments, family office philanthropy and Issa Foundation projects.’
Zuber said: ‘With the sale of my Asda shares, I will now turn my attention to running and managing the remaining EG UK yards that I have personally acquired and spend more time on my charitable endeavours.’
Meanwhile, Asda chairman Stuart Rose, a former Marks & Spencer boss, said TDR’s decision to buy Zuber’s stake was a “clear sign” of its commitment to the supermarket.
TDR managing partners Gary Lindsay and Tom Mitchell said in a statement: “As majority owners, we will continue to work closely with Asda’s management team and colleagues across the business to support an ambitious strategy that we believe is the right one to continue to they moved. Asda forward.’
The deal comes as Asda continues its search for a chief executive after Mohsin handed over the supermarket’s leadership as part of the chain’s reshuffle.
Mohsin said earlier this year that he had “reset” the company before hiring a new boss.
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