The time has come that Walmart has finally announced that it has completed the sale of the British supermarket chain, Asda. Following a series of discussions and several roadblocks, the retail behemoth has sold the company to the billionaire Issa brothers and TDR Capital, a private equity group. The chain is valued at 8.8 billion USD, and the pair plan to expand the chain by adding smaller stores to its portfolio.
“The Issa brothers have a reputation for good brand partnerships, for convenience, and for growth, and that’s really what we were interested in for Asda,” Judith McKenna, President and CEO of Walmart International told Reuters.
According to McKenna’s statement to Reuters, Asda’s new owners are targeting growth by expanding into convenience shops from its large supermarket and online operations, bringing Asda more in line with market leader Tesco and Sainsbury’s. As stated in the release, the Issa brothers will invest more than one billion British pounds over three years to keep prices low, develop supply chains, and invest in e-commerce in addition to convenience stores.
With this deal completed, Asda will officially be under British ownership once more for the first time since 1999 when Walmart purchased it for 6.7 billion GBP, or about 8.6 billion USD.
British retail veteran Roger Burnley will remain as CEO of Asda in a deal which ratings agency Moody’s said allows Walmart to continue to refocus its international efforts on markets with more long-term upside, such as India and China.
As Walmart continues to make big moves across the industry, Deli Market News will be here to continue to report on the latest updates from the retail giant.