The ASDA was sold by Walmart (NYSE: WMT) to its 2 billion Blackburn-based brother in a £6.8 billion deal.
Mohsin and Zuber Issa are gas station tycoons and are buying a majority stake in the supermarket, backed by TDR Capital.
“We are extremely proud to be investing in Asda, the iconic British business we have admired for many years,” the Issa brothers said in a statement.
“The ASDA’s customer-centric philosophy focuses on operational excellence and commitment to the community in which it operates is the same value we built on the group,” they added.
The transaction is expected to close early next year.
Roger Burnley CEO said in the deal:
“Combining investment, expertise and ambition. Asda, Walmart, Issa Brothers and TDR have an incredible opportunity to accelerate existing strategies, develop even more exciting offers for our customers, and strengthen the business of our colleagues,” he added.
Issa Brothers has pledged to invest £1 billion over the next three years.
Walmart will continue to invest in stocks in the UK’s third largest supermarket chain.
“We are pleased to announce that we are committed to providing a range of services and services to our customers,” said Judith McKenna, CEO of Walmart International.
