Billionaire Brothers Split Business Empire as Asda Co-Owner Sells Stake to TDR Capital
- Zuber Issa, co-owner of Asda, sells his stake to private equity company TDR Capital, paving the way for the equity giant to take majority control.
- Asda's corporate structure sparks political questions as billionaire brothers behind the supermarket chain divide their business empire.
- The business deal signifies a significant shift in ownership structure and strategic direction for Asda.
A co-owner of Asda, Zuber Issa, sold his 22.5% share in the company to a private equity firm called TDR Capital. This means TDR now owns the majority of Asda, controlling 67.5% of the supermarket group. The deal is expected to be finalized in the third quarter of this year. Private equity companies like TDR buy businesses, invest money to make them more profitable, and then sell them for a higher price. This ownership change has been closely watched by politicians. Members of the Business and Trade Select Committee raised concerns about the deal in hearings held in July and December last year. Apart from TDR Capital, the other owners of Asda are Walmart, the previous owners who still hold 10% of the company, and Mohsin Issa, Zuber's brother. The ownership structure of Asda has been questioned by MPs due to its complexity, with 16 different entities between the owners and the supermarket operating company, some of which are registered offshore. Zuber and Mohsin Issa, who are billionaires, bought Asda from Walmart for £6.8bn in 2020 with the support of TDR Capital. Zuber will step down as co-CEO, and Mohsin will become the sole CEO of the group. With Mohsin and TDR's continued focus and ownership, it is believed that Asda will achieve its growth goals. The recent announcement confirms that Zuber Issa has sold his 22.5% stake in Asda to TDR Capital, making TDR the majority owner with a 67.5% share. This move marks a separation of business interests between the Issa brothers, with Mohsin retaining his stake in Asda while Zuber steps back from managing both Asda and EG Group, their petrol forecourts business. Union leaders have expressed concerns about TDR holding a larger portion of Asda, fearing negative impacts on consumers and staff. Zuber's decision to leave Asda follows his plan to focus on managing the forecourt sites he acquired and his charitable activities. The brothers will continue to share business interests in other ventures like sportswear maker Castore and hydrogen-powered lorry start-up HVS.