Following rumours in recent months, it has been confirmed today that private equity firm TDR Capital will acquire Zuber Issa’s shares in Asda. His brother Mohsin will remain a co-owner of the supermarket they bought along with TDR in 2021.
The transaction is set to be completed in the third quarter of this year. TDR will then own 67.5% of Asda, with Mohsin (22.5%) and Walmart (10%) controlling the rest.
The transaction further dismantles the business relationship between Zuber and Mohsin, and comes at a time when Asda is losing market share. Reports have suggested that a rift between the brothers was sparked by Mohsin’s decision to leave his wife and enter into a relationship with a former tax partner who used to work at Asda’s auditing firm, EY. Earlier this year, Mohsin denied rumours of a fallout with his brother, saying in an interview with the BBC that the pair “get on exceptionally well”.
Commenting on today’s news, Gary Lindsay and Tom Mitchell, Managing Partners of TDR Capital, said: “By combining our investment and sector expertise with Asda’s heritage of delivering value for customers, we have already made significant progress in transforming Asda … 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.”
Asda’s Chairman, Stuart Rose, commented: “On behalf of the Board, I welcome TDR’s increased investment in Asda – which is a clear sign of its commitment to the business … The Board and shareholders continue to put in place the building blocks to position Asda for long-term success, and that is good news for colleagues, customers, suppliers and other business partners.”
Meanwhile, Mohsin said: “Today’s announcement further underlines my own and TDR’s confidence both in Asda and the UK consumer market. As a shareholder group, we are excited about the growth journey we are on … I also 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 co-investments, family office philanthropy and Issa Foundation projects.”
Zuber concluded: “With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired, and spend more time on my charitable endeavours. I am pleased to see TDR increasing its investment in Asda. With Mohsin and TDR’s ongoing focus and shareholding, I am confident that Asda will achieve its growth ambitions.”
NAM Implications:
- This means more of a PE influence on how Asda is run…
- i.e. see The Implications of Private Equity Takeover of a Mult
- And why not reassess your retailer handling by business model? – See Tailoring Major Customer Management by Business Model (Vive la Difference?)
