- TDR Capital announced it will become the majority owner of Asda
- Mohsin Issa still owns 22.5%
- Zuber’s departure opens a rift between the Blackburn brothers
A family feud has seen the billionaire brothers who bought Asda go their separate ways.
Zuber Issa sold his shares in the supermarket to the private equity firm TDR Capital.
The London company announced yesterday that it will become the majority owner of Asda, while Mohsin Issa still owns 22.5 percent.
Zuber’s departure drives a wedge between the Blackburn brothers, who have a combined net worth of more than £5bn.
It comes after Mohsin left his wife of 30 years and began a relationship with a high-profile accountant.
Parting ways: Tycoons Zuber (left) and Mohsin Issa pounced on Asda in 2021
The brothers built their business empire from humble beginnings in Lancashire. The Issas have faced scrutiny after buying Asda from US retail giant Walmart – which retained a 10 per cent stake – for £6.8bn.
Since the brothers took over in 2021, the supermarket chain has been saddled with billions of pounds of debt.
The Issas have previously been questioned by MPs on the Business and Commerce Committee about the company’s complex ownership structure.
And Asda last month reported a slowdown in sales as it underperformed its larger rivals and lost market share.
Issas’s purchase of Asda was backed by TDR, which is also a major investor in the brothers’ EG Group petrol station chain after buying a 50 per cent stake in 2015.
Founded in 2002, TDR is one of the UK’s most ruthless private equity firms.
It was also announced yesterday that Zuber, 51, will step down as co-CEO of EG Group.
It has bought its UK petrol station business (around 30 petrol stations) and some food service sites for £228m using some of the proceeds from the Asda deal.
EG Group said it will use the cash to pay down debt and shore up its balance sheet.
Zuber will retain his stake in EG Group and continue as a non-executive director, while Mohsin, 52, will become the sole executive director.
The brothers have denied a family feud, and Mohsin yesterday attempted to dispel rumors of infighting between brothers.
He previously dismissed rumors of disagreements, telling the BBC that the couple “get along exceptionally well.”
Yesterday Mohsin said: “I want to add my personal support and best wishes for Zuber’s plans as we continue our successful family partnership, working as partners on our personal co-investments, family office philanthropy and Issa Foundation projects.”
Zuber said: “With the divestment of my Asda shares, I will now turn my attention to leading and managing the remaining EG service stations in the UK that I have personally acquired and devoting more time to my charitable efforts.”
Meanwhile, Asda chairman Stuart Rose, the former boss of Marks & Spencer, said TDR’s decision to buy out Zuber’s stake was a “clear sign” of its commitment to the supermarket.
TDR managing partners Gary Lindsay and Tom Mitchell said in a statement: “As majority owners, we will continue to work closely with Asda’s management team and colleagues across the business to support the ambitious strategy which we believe is the right one for keep moving forward.” Asda forward.”
The deal comes as Asda continues its search for a chief executive after Mohsin handed over management of the supermarket as part of a revamp of the chain.
Mohsin said earlier this year he was carrying out a “reboot” of the company before hiring a new boss.