Issa Brothers and TDR Capital Acquire ASDA for $9.5 Billion
The acquisition of ASDA finally came to completion this week. The British supermarket chain was acquired by the Issa brothers who, together with TDR Capital, a private equity firm, completed the deal for a total value of 6.8 billion pounds.
Last October, two billionaires from Blackburn bought a majority stake in ASDA. Commonly known as the ISSA brothers, they own the EG Group which operates over 6000 petrol stations in Europe and employs over 44000 workers.
The acquisition raised eyebrows at the Competitions and Markets Authority but the brothers said they were expecting it. After announcing the deal, the brothers said they want to grow the company’s online and convenience operations. The company headquarters will remain in Leeds.
Walmart still has an equity stake in ASDA and its commercial relationship with the company is expected to continue. It also has a seat on the ASDA board.
The takeover of ASDA by the Issa brothers resulted in a probe by the Competitions and Markets Authority. A phase 1 investigation into the takeover was launched early December last year. The results of that investigation are expected to be concluded by the 18th of February 2021.
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