- TDR Capital has announced it will become the majority shareholder of Asda
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 announced yesterday that it will become the majority shareholder of Asda, with Mohsin Issa still holding a 22.5 percent stake.
Parting ways: Tycoons Zuber (left) and Mohsin Issa flew to Asda in 2021
Zuber’s departure is driving a wedge between the Blackburn brothers, who have a combined net worth of more than £5 billion.
It comes after Mohsin left his wife of 30 years and started a relationship with a high-flying accountant.
The brothers developed their business empire from humble beginnings in Lancashire. The Issas have come under scrutiny after buying Asda from US retail giant Walmart – which retained a 10 per cent stake – for £6.8 billion.
Since the brothers took over in 2021, the supermarket chain has racked up billions of pounds of debt.
The Issas have previously come under fire from MPs on the Business and Trade Committee over the company’s complex ownership structure.
And Asda reported a sales slowdown last month as it underperformed its bigger rivals and lost market share.
Issas’ takeover of Asda was backed by TDR, which is also a major investor in the brothers’ EG Group petrol station chain, having bought a 50 per cent stake in 2015.
Founded in 2002, TDR is one of the most ruthless private equity firms in Britain.
Yesterday it was also announced that 51-year-old Zuber will step down as co-CEO of EG Group.
He used part of the proceeds from the Asda deal to buy his UK petrol stations – around 30 petrol stations – and a number of foodservice locations for £228 million.
EG Group said it will use the money to repay debt and strengthen its balance sheet.
Zuber will retain his stake in EG Group and continue as a non-executive director, while Mohsin, 52, will become sole CEO.
The brothers have denied a family feud, with Mohsin yesterday attempting to dispel rumors of sibling infighting.
He previously dismissed rumors of disagreements, telling the BBC the pair “got on exceptionally well.”
Yesterday, Mohsin said, “I would like to add my personal support and best wishes to 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 sale of my Asda shares, I will now turn my attention to running and managing the remaining EG UK forecourts that I have personally acquired, and spend more time on my charitable activities.’
Meanwhile, Asda chairman Stuart Rose, a former boss of Marks & Spencer, said TDR’s decision to buy Zuber’s shares was a “clear sign” of its commitment to the supermarket.
TDR management partners Gary Lindsay and Tom Mitchell said in a statement: ‘As majority shareholders, we will continue to work closely with the Asda management team and colleagues across the business to support the ambitious strategy we believe is the right one to move to stay. Asda to the front.”
The deal comes as Asda continues its search for a CEO after Mohsin handed over control of the supermarket as part of a revamp of the chain.
Mohsin said earlier this year he was conducting a “reset” of the company before hiring a new boss.
