- TDR Capital announced it will become Asda’s majority owner
A family feud has seen the billionaire brothers who bought Asda go their separate ways.
Zuber Issa sold his shares in the supermarket to private equity firm TDR Capital.
The London buyout company yesterday announced it will become Asda’s majority owner, while Mohsin Issa still holds 22.5 per cent.
Parting of the ways: Tycoons Zuber (left) and Mohsin Issa swooped on Asda in 2021
Zuber’s exit drives a wedge between the Blackburn-based brothers, who have a combined net worth of more than £5billion.
It comes after Mohsin left his wife of 30 years and began a relationship with a high-flying accountant.
The brothers developed their business empire from humble beginnings in Lancashire. The Issas have faced scrutiny after buying Asda from US retail giant Walmart – which retained a 10 per cent stake – for £6.8billion.
Since the brothers took over in 2021, the supermarket chain has been loaded with billions of pounds of debt.
The Issas have previously been grilled by MPs on the Business and Trade Committee over the complex ownership structure at the company.
And Asda last month reported a slowdown in sales as it underperformed its bigger rivals and lost market share.
The Issas buyout of Asda was backed by TDR, which is also a major investor in the brothers’ petrol station chain EG Group after buying a 50 per cent stake in 2015.
Formed in 2002, TDR is one of the most ruthless private equity firms in the UK.
It was also announced yesterday that Zuber, 51, will step down as co-chief executive of EG Group.
He has bought its UK forecourt business – around 30 petrol stations – and some food service sites for £228m using some of the proceeds of the Asda deal.
EG Group said it will use the cash to repay debt and shore up its balance sheet.
Zuber will keep his shareholding in EG Group and continue as a non-executive director, while Mohsin, 52, will become sole chief executive.
The brothers have denied a family feud, with Mohsin yesterday seeking to dispel rumours of sibling infighting.
He previously dismissed rumours of disagreements, telling the BBC the pair ‘get on exceptionally well’.
Yesterday Mohsin said: ‘I want to add my personal support and best wishes for Zuber’s plans as we continue our successful family partnership, working as partners on our personal co-investments, family office philanthropy and Issa Foundation projects.’
Zuber said: ‘With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired and spend more time on my charitable endeavours.’
Meanwhile Asda chairman Stuart Rose, former boss of Marks & Spencer, said TDR’s decision to buy Zuber’s stake was a ‘clear sign’ of its commitment to the supermarket.
TDR managing partners Gary Lindsay and Tom Mitchell said in a statement: ‘As majority owners, we will continue to work closely with the Asda management team and colleagues across the business to support the ambitious strategy which we believe is the right one to continue to move Asda forward.’
The deal comes as Asda continues its hunt for a chief executive after Mohsin handed over the running of the supermarket as part of a revamp of the chain.
Mohsin said earlier this year that he was carrying out a ‘reset’ of the company before hiring a new boss.