under the new owners, Asda will invest £1 billion in the supermarket
The Blackburn-based Issa brothers have won the battle to buy Asda in a deal worth £6.8 billion.
A consortium of Zuber and Mohsin Issa and private equity firm TDR Capital will take a majority stake in the supermarket chain.
It means the grocer will return to majority UK ownership for the first time in two decades.
The Issa brothers own EG Group, which has more than 5,200 petrol stations across the UK and Europe.
They founded EG in 2001 and initially called it Euro Garages, expanding it from a single site in Bury, Greater Manchester.
TDR Capital now owns half of the group, with Zuber controlling 25% and Mohsin the remaining 25%.
According to Brian Madderson, chairman of the Petrol Retailers Association (PRA), the speed of growth of their petrol station business marks the Issa brothers out as “remarkable entrepreneurs”.
The fast expansion came as the major oil companies sold off or closed their High Street petrol outlets to concentrate on production and refining.
Those who know them say that part of their success is down to the fact that they remain curious about competitors and being willing to learn and pick up new ideas.
On the Asda deal, a spokesperson for the Issa brothers and TDR Capital did not comment on how they are funding the deal.
Walmart said that, under the new owners, Asda will invest £1 billion in the supermarket over the next three years.
The auction process for Asda has lasted for several months.
Walmart decided to sell a controlling stake in Asda after cancelling plans to float the business following a failed £7.3 billion merger with rival Sainsbury’s.
In 1999, Walmart purchased Asda for £6.7 billion. Following Asda’s purchase by the Issa brothers, Walmart will keep a minority stake.
During the deal’s announcement, Walmart said that Asda would keep its headquarters in Leeds and its chief executive, Roger Burnley, would remain in place.
Asda already has a relationship with the Issa brothers through their petrol forecourt business.
Recently, the supermarket announced its expansion into convenience stores and will initially trial “Asda On the Move” at three of EG Group’s fuel station forecourts in the Midlands.
Mohsin and Zuber Issa said they wanted to support Asda’s management to achieve long-term growth.
They said: “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.”