LONDON—Walmart agreed to sell its stake in U.K. grocer Asda to Mohsin and Zuber Issa, the brothers who founded EG Group, and private equity group TDR Capital in deal that values the company at $8.8 billion.
The British supermarket recently announced plans to expand into convenience stores with an initial trial of its “Asda On the Move” concept at three of EG Group’s gas station forecourts in the Midlands, U.K.
Asda has more than 600 stores and gas stations, the Wall Street Journal reports. EG Group’s network of gas stations and convenience stores includes more than 6,000 sites across Europe, parts of the U.S. and Australia.
“The Issa brothers have a reputation for good brand partnerships, for convenience and for growth and that’s really what we were interested in for Asda,” Judith McKenna, president and CEO of Walmart International told Reuters Friday. Walmart will retain an unspecified minority stake in Asda.
Walmart, which bought Asda in 1999, attempted to sell Asda to Sainsbury in 2018, but U.K. regulators blocked the deal, citing concerns about competition and higher prices for customers.
The Issa brothers said they will invest more than one billion pounds over three years to develop supply chains, e-commerce and convenience stores to achieve long-term growth for Asda.
“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,” they told BBC News.