Billionaire Brothers Part Ways as TDR Capital Takes Majority Ownership of Asda

Billionaire Brothers Part Ways as TDR Capital Takes Majority Ownership of Asda

In a surprising turn of events, the billionaire Issa brothers, known for their ownership of Asda, have gone their separate ways. Zuber Issa has sold his shares in the supermarket chain to private equity firm TDR Capital.

This move makes TDR Capital the majority owner of Asda, while Mohsin Issa retains a 22.5 percent stake in the company.

This development not only alters the ownership structure of one of the UK’s largest supermarket chains but also highlights the personal and professional divergence between the Issa brothers.

The Brothers’ Business Journey

The Issa brothers, Zuber and Mohsin, have a combined net worth of over £5 billion and have built a formidable business empire from humble beginnings in Lancashire.

Their acquisition of Asda from US retail giant Walmart in 2021 for £6.8 billion was a significant milestone. Walmart retained a 10 percent stake in Asda after the sale.

Since taking over, the brothers have faced significant scrutiny regarding the complex ownership structure of the company and its increasing debt levels.

Recently, Asda reported a slowdown in sales and a loss of market share, adding pressure on the brothers’ management.

Family and Business Feud

Zuber’s decision to sell his shares to TDR Capital has driven a wedge between the Blackburn-based brothers. This follows Mohsin’s recent personal life changes, including leaving his wife of 30 years for a relationship with a high-flying accountant.

Despite the sale and personal changes, the brothers have publicly denied any family feud.

Mohsin issued a statement expressing his support for Zuber’s future endeavors and reaffirming their continued partnership in personal co-investments, philanthropy, and projects under the Issa Foundation.

TDR Capital’s Increased Role

TDR Capital, a prominent private equity firm in the UK, has become Asda’s majority owner following the acquisition of Zuber’s shares.

The firm has a longstanding relationship with the Issa brothers, having backed their buyout of Asda and being a major investor in their petrol station chain, EG Group, since 2015.

With Zuber stepping down as co-chief executive of EG Group, he has purchased its UK forecourt business and some food service sites for £228 million.

He will focus on managing these assets and his charitable activities while maintaining a non-executive director role in EG Group.

Leadership and Future Plans

Asda is currently searching for a new chief executive after Mohsin handed over the running of the supermarket as part of a company revamp. Mohsin has described this period as a “reset” for the company, intending to position Asda for future growth under new leadership.

Asda chairman Stuart Rose, a former Marks & Spencer boss, has welcomed TDR Capital’s increased involvement, calling it a clear sign of commitment to the supermarket’s future.

TDR managing partners Gary Lindsay and Tom Mitchell echoed this sentiment, expressing their intention to support Asda’s ambitious strategy.

Conclusion: Moving Forward

The shift in Asda’s ownership marks a significant chapter in the company’s history and in the personal and professional lives of the Issa brothers.

While the family dynamics have changed, both brothers remain influential figures in their respective business and philanthropic efforts.

As TDR Capital takes the helm as the majority owner, the focus will be on navigating Asda through its current challenges and towards a stable and prosperous future.

The retail world will be watching closely to see how these changes impact one of the UK’s most well-known supermarket chains.