Walmart sells Asda for $8.8bn

The acquisition will mean that the buyers will have a majority ownership stake in the UK retailer. Walmart will retain an equity investment in the business, an ongoing commercial relationship and a seat on the board.

Mohsin and Zuber Issa said: "We are very proud to be investing in Asda, an iconic British business that we have admired for many years. Asda’s performance through the Covid-19 pandemic has demonstrated the fundamental strength and resilience of the business, and we are excited to support Roger and his team as they continue to reposition the business to drive long-term growth.

"We believe that our experience with EG Group, including our expertise around convenience and brand partnerships and our successful partnership with TDR Capital, can help to accelerate and execute that growth strategy. After a successful period as part of Walmart we are looking forward to helping Asda build a differentiated business that will continue to serve customers brilliantly in communities across the UK."

The new British ownership will bring significant expertise in convenience retail and brand partnerships to help Asda serve a wider base of UK shoppers.

They will also support and accelerate Asda’s existing strategy, which is anchored in delivering low prices and convenience to customers however they want to shop.

Under the new ownership, Asda will continue to work closely with suppliers to provide best value ranges for customers in the categories that matter most to them, said the company in the press release.

The press release also said that there would be an investment in Asda of over £1bn in the next three years in Asda to further strengthen the business and its supply chain.

Asda will remain headquartered in Leeds and will continue to be led by Roger Burnley who will form part of Asda’s Board.

Judith McKenna, President and Chief Executive Officer of Walmart International said:“We are delighted to be able to announce this deal today, which we believe creates the right ownership structure for Asda, building on its 71 year-heritage, whilst bringing a new entrepreneurial flair, not only to Asda, but also to UK retailing.”

Roger Burnley, Chief Executive Officer of Asda, said: "This new ownership opens an exciting new chapter in Asda’s long heritage of delivering great value for UK shoppers. 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."

The transaction is still subject to regulatory approvals and is expected to complete in H1 2021.