ASDA has been bought from Walmart for around £6.8 billion by a pair of billionaire brothers from the UK.
ASDA hasn’t been owned by brits for over 20 years.
The pair acquired the supermarket chain for £100 million more than the American firm originally bought it for back in 1999 (not adjusted for inflation), marking the first british owners for the first time in 20 years.
Walmart will still have a stake in the company, and a seat on the board.
Asdas headquarters will also remain in Leeds and the company will continue to be directed by current chief executive Roger Burnley.
Asda’s new owners have promised to put more than £1 billion into the business in coming years, in a bid to improve the business, which is already greatly successful.
Chancellor Rishi Sunak has spoke positively about the buy, tweeting: “Great to see @asda returning to majority UK ownership for the first time in two decades today.
“The new owners have already committed to investing over £1bn in the next three years and increasing the proportion of UK-based suppliers. I wish them the best of luck.”
Walmart and ASDA continue to turn over good revenue despite being impacted by the coronavirus. Mohsin and Zuber Issa, the two brothers who have taken over the company, are believed to have had their eye on the company for a while.
They said in a statement: “We are very proud to be investing in Asda, an iconic British business that we have admired for many years.
“Asda’s customer-centric philosophy, focus on operational excellence and commitment to the communities in which it operates are the same values that we have built EG Group on.
“Asda’s performance through the COVID-19 pandemic has demonstrated the fundamental strength and resilience of the business, and we are excited to support Roger and his team as they continue to reposition the business to drive long-term growth.
“We believe that our experience with EG Group, including our expertise around convenience and brand partnerships and our successful partnership with TDR Capital, can help to accelerate and execute that growth strategy.
“After a successful period as part of Walmart we are looking forward to helping Asda build a differentiated business that will continue to serve customers brilliantly in communities across the UK.”
The company is expected to focus on employing new staff, as retail was one of the worst hit industries by the coronavirus. There aren’t believed to be any significant changes coming to the company, such as a rebrand, but with the new cash injection that has been promised, and continued support from Walmart, the future of the firm is looking bright.
