- Sunday, November 24, 2024
Zuber Issa has been instrumental in steering the course of Asda alongside his brother Mohsin
By: Pramod Thomas
PRIVATE equity firm, TDR Capital, is on the cusp of clinching a deal to acquire Zuber Issa’s substantial 22.5 per cent stake in Asda, one of the country’s major supermarket chains, it was reported this week.
Sources familiar with the discussions revealed that an agreement is imminent, with an announcement anticipated in the coming weeks.
Should the deal materialise, TDR would substantially bolster its control over Asda, potentially gaining a controlling interest in the retail giant.
Zuber Issa, who has been instrumental in steering the course of Asda alongside his brother Mohsin, is now poised to sever ties with the supermarket chain, paving the way for a significant shift in ownership dynamics.
The Issa brothers, in partnership with TDR Capital, orchestrated the acquisition of Asda from the US retail behemoth Walmart just three years ago, in a landmark deal valued at £6.8 billion.
However, their stewardship of the supermarket chain has been marred by challenges, including mounting debt pressures and fierce competition within the industry.
Asda’s financial woes have drawn scrutiny from lawmakers, with Mohsin having been summoned for questioning twice in the past year over concerns about the company’s financial practices and their impact on consumer prices.
Zuber is reportedly engaged in negotiations to offload portions of the EG Group, the petrol station empire he co-founded with Mohsin. This move underscores the broader realignment of the Issa brothers’ business portfolios as they chart distinct paths forward.
Born in Blackburn, Issa brothers ascended from humble beginnings to forge a global empire comprising thousands of petrol stations and convenience stores across Europe, the US, and Australia.
With a track record of backing the Issa brothers’ ambitious ventures since 2015, TDR Capital continues to assert its influence in shaping the trajectory of the retail sector, leveraging its financial prowess to capitalise on emerging opportunities, reports said.
TDR also owns stakes in Stonegate Pub Company, Pizza Express and David Lloyd Leisure.
According to reports, Mohsin also plans to step back from overseeing the daily operations of Asda in order to concentrate on managing EG Group. The process of seeking a new CEO for Asda has already started.
