Issa brothers and TDR Capital complete purchase of supermarket chain Asda

The Issa brothers and TDR Capital have completed a £6.8 billion purchase of supermarket chain Asda.

The billionaire Issa brothers, Zuber and Mohsin, the founders of convenience and fuel retailer EG Group, have acquired a majority ownership stake in the grocer. Walmart will retain an equity investment in the business, with an ongoing commercial relationship and a seat on the board.

Plans for the acquisition were first revealed in October 2020

The transaction received approval from the FCA on February 8 and all deal conditions have been met in full.

The parties involved said they continue to work constructively with the Competition and Markets Authority on regulatory approval, which is currently expected in the second quarter.

In a separate announcement, the CMA said it has set April 20 as a deadline for its preliminary decision on the move.

The competition watchdog launched an investigation in December and initially set a February 18 deadline for its Phase One probe, before pushing its timetable back in order to look at additional documentation.

Since the inquiry was launched, the Issa brothers and TDR have confirmed plans to sell Asda’s petrol forecourt business to its own EG Group for £750 million.

The CMA will also consider the forecourt deal as part of its inquiries.

The update also comes days after the new owners completed a £2.75 billion junk bond sale to help fund the Asda acquisition.

Competition lawyers expect the deal to be given the go-ahead by the regulator.

It comes almost two years after Asda’s attempted merger with rival Sainsbury’s was halted by the CMA.