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October 5, 2020updated 12 Oct 2020 4:30pm

Issa brothers, TDR Capital to acquire Walmart’s UK business Asda  

Multinational retail corporation Walmart has agreed to divest its wholly-owned UK business Asda to Issa brothers and funds managed by TDR Capital. 

Multinational retail corporation Walmart has agreed to divest its wholly-owned UK business Asda to Issa brothers and funds managed by TDR Capital. 

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What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
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  • What impact is inflation having on UK retail sales?
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  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.

As part of this deal, Issa brothers and TDR Capital will have a majority ownership stake in Asda with equal shareholdings. 

The transaction has an enterprise value of £6.8bn and carried out on a debt-free and cash-free basis. 

However, Walmart will continue to hold an equity investment in the business, continue a commercial relationship and a position on the board. 

Walmart International president and chief executive officer Judith McKenna 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. 

“I’m delighted that Walmart will retain a significant financial stake, a board seat, and will continue as a strategic partner.  

Asda has been a powerhouse of innovation for the rest of the Walmart world, and we look forward to continuing to learn from them in the future.  

This important combination will continue to keep customers and colleagues at Asda’s heart, which is important to us all.” 

Following this acquisition, Asda will remain headquartered in Leeds and continue to be led by Roger Burnley. 

Additionally, more than £1bn will be invested in Asda in the next three years to boost the business and its supply chain. 

The deal is subject to regulatory approvals and is expected to complete in the first half of next year.

Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.