TDR Capital, a private equity firm, is set to become the majority owner of Asda after agreeing to purchase Zuber Issa’s shares in the supermarket chain. Concurrently, EG Group has announced the sale of its remaining UK forecourt business and select foodservice locations to Zuber Issa for £228 million.

Zuber Issa will step down as co-CEO of EG Group, leaving Mohsin Issa to lead the company as the sole CEO. Post-transaction, Asda’s ownership will be split as follows: 67.5% by TDR Capital, 22.5% by Mohsin Issa, and 10% by Walmart Inc. The transaction is expected to complete in the third quarter of 2024.

TDR Capital initially invested in Asda in June 2021, alongside the Issa brothers, to gain majority ownership. Since then, the firm has focused on supporting Asda’s strategy to offer low prices and expand into convenience retail.

Gary Lindsay and Tom Mitchell, managing partners of TDR Capital, commented: “We first invested into Asda over three years ago, seeing a huge opportunity to cement its position as one of the UK’s leading retail brands. By combining our investment and sector expertise with Asda’s heritage of delivering value for customers, we have already made significant progress in transforming Asda.”

Asda chairman Stuart Rose expressed his support for the increased investment, stating, “On behalf of the Board, I welcome TDR’s increased investment in Asda – which is a clear sign of its commitment to the business.”

Mohsin Issa added, “As a shareholder group, we are excited about the growth journey we are on. Asda is an iconic British brand and we are committed to setting it up for long-term success and delivering great value for customers across the UK.”

Zuber Issa shared his confidence in Asda’s future, stating, “I am pleased to see TDR increasing its investment in Asda. With Mohsin and TDR’s ongoing focus and shareholding, I am confident that Asda will achieve its growth ambitions.”

Separately, EG Group has finalised the sale of its remaining UK forecourt business to Zuber Issa. Post-transaction, Zuber will step down as co-CEO but will retain his shareholding and remain on the board as a non-executive director.

Lord Stuart Rose, chairman of EG Group, praised Zuber’s leadership: “On behalf of the board of EG Group, I would like to thank Zuber for his incredible leadership, which has been central to building one of the largest and most entrepreneurial private companies in the UK.”

Mohsin Issa will continue to lead EG Group as CEO, supported by the senior management team. The transaction is anticipated to conclude in the latter half of 2024. Additionally, EG Group has announced the appointment of Russell Colaco as Group Chief Financial Officer, succeeding Michael Bradley.

EG Group was co-founded by Zuber and Mohsin Issa in 2001 and has grown from a single site in the north of England to a global enterprise with over 5,500 locations.