Walmart will sell its wholly-owned UK business Asda to ISSA brothers and TDR capital for 6.8 billion pounds, according to press release. Under the deal, Issa brothers and TDR will acquire majority ownership while Walmart will retain an equity investment with ongoing commercial relationship and Board seat.
- Issa brothers and TDR to bring expertise in convenience retail and brand partnership to help Asda serve diverse UK shoppers
- Current Asda management to continue driving current growth strategy with access to Walmart’s global sourcing and innovation
- Business to support management team led by Roger Burnley
- Entity to maintain competitive pay levels for Asda colleagues and offer enriching employment opportunities
- Over 1 billion pounds investment in the next three years in Asda to strengthen business and supply chain
- Asda to remain price leader in the supermarket fuel sector.
- Entity to increase proportion of UK-based suppliers and raise volume of products
- Asda to enjoy continued Walmart’s support and involvement.
- New owners to retain Asda’s industry-leading supplier payment terms
- Business to maintain commitment to Create Change for Better program
Walmart stock closed for trading on Thursday. WMT: NYSE premarket is down 1.59%