Asda-owning Issa brothers divide their empire as Zuber sells supermarket stake
The billionaire brothers, Mohsin and Zuber Issa, who are part-owners of Asda, are making changes to their business interests. Zuber Issa has decided to sell his shares in the supermarket to the private equity firm TDR Capital. This move comes three years after the brothers, along with TDR Capital, took over the Leeds-based grocery chain for £6.8bn.
Zuber Issa owned a 22.5% stake in Asda, but the sale of his shares to TDR Capital is expected to be completed between July and September. After the transaction, TDR Capital’s stake in Asda will increase from 45% to 67.5%, while Mohsin Issa will retain a 22.5% stake. The US retailer Walmart, Asda’s former owner, will continue to hold a 10% stake in the supermarket chain.
The Issa brothers, who have a combined fortune of £5bn, started their business journey from humble beginnings in Blackburn, Lancashire. They built their wealth from petrol forecourts, beginning with one in Bury, Greater Manchester. In addition to their interests in Asda, the brothers also have shared business ventures in the sportswear brand Castore and the hydrogen lorry startup HVS.
Recent research by the RAC motoring group revealed that Asda is now the UK’s most expensive supermarket fuel seller, a departure from its previous reputation for offering the cheapest fuel prices. This change has raised concerns among consumer groups, such as the GMB union, about the impact on shoppers and staff at Asda.
Despite reports of a rift between the Issa brothers earlier this year, Mohsin Issa denied any estrangement, emphasizing their strong relationship. The brothers have faced scrutiny over the financing of their business empire, particularly the debt-fueled deals at EG Group.
As part of their ongoing partnership, Mohsin Issa expressed his support for Zuber’s decision to focus on managing the UK petrol stations acquired from EG Group. Both brothers remain committed to their joint investments, family philanthropy, and the Issa Foundation projects.
TDR Capital, the private equity firm acquiring a larger stake in Asda, defended its track record at the supermarket chain. The firm highlighted their efforts in expanding Asda’s store footprint, introducing a successful loyalty app, and growing the convenience business within the chain.
In conclusion, the Issa brothers’ decision to reallocate their business interests and Zuber’s sale of his stake in Asda mark a significant development in their entrepreneurial journey. The future implications of these changes on Asda and the broader retail landscape remain to be seen.
