Asda comes back to Britain
Walmart is to sell supermarket chain Asda to billionaires Moshin and Zuber Issa and the private-equity firm TDR Capital.
Walmart once tried – and failed – to merge Asda, its UK operation, with Sainsbury’s. Now it has agreed to sell the supermarket chain to “two billionaire brothers from Blackburn”, Moshin and Zuber Issa, and the private-equity firm TDR Capital, says Zoe Wood in The Guardian.
The deal, which will see Walmart retain a minority stake in the company, as well as a seat on the board, values Asda at around £6.8bn, only “slightly more” than the £6.7bn that Walmart paid in 1999. This reflects the fact that, even with Walmart’s “financial power”, Asda has “struggled” in the “ferociously competitive” grocery market.
The “self-made” Issas are touted by Walmart as the “secret sauce” of the deal, says Deirdre Hipwell on Bloomberg. This is because Walmart hopes that the brothers can use their ownership of EG Group, which operates food outlets and stores on over 6,000 different sites, including petrol stations and highway service areas, to help Asda break into the “lucrative convenience-store market”. However, Britain’s convenience-store arena is “crowded with competitors”, with many of the best sites already “snapped up”, while there is also evidence that the rapid growth “may be poised to cool”. Covid-19 has also moved a lot of food shopping online.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The government has welcomed Asda returning to British ownership, says Christopher Williams in The Sunday Telegraph. But the cost of the deal is fuelled by £4bn of junk bonds and leveraged loans, so the Exchequer will be “out of pocket for some time”. The cost of the borrowing will be offset against Asda’s profits.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
Card Factory is a stand-out small-cap going cheapIn a digital world, we still value the personal touch. That’s good news for Card Factory, whose unique business model is suited to weather all economic storms
-
8 of the best smallholdings for sale nowThe best smallholdings for sale – from a medieval cross-passage farmhouse in Taunton, Somerset, to a former farmhouse with an orchard in the Welsh Marches
-
Card Factory is a stand-out small-cap going cheapIn a digital world, we still value the personal touch. That’s good news for Card Factory, whose unique business model is suited to weather all economic storms
-
8 of the best smallholdings for sale nowThe best smallholdings for sale – from a medieval cross-passage farmhouse in Taunton, Somerset, to a former farmhouse with an orchard in the Welsh Marches
-
How much gold does China have – and how to cash inChina's gold reserves are vastly understated, says Dominic Frisby. So hold gold, overbought or not
-
How to invest in undervalued gold minersThe surge in gold and other precious metals has transformed the economics of the companies that mine them. Investors should cash in, says Rupert Hargreaves
-
Debasing Wall Street's new debasement trade ideaThe debasement trade is a catchy and plausible idea, but there’s no sign that markets are alarmed, says Cris Sholto Heaton
-
Europe’s new single stock market is no panaceaOpinion It is hard to see how a single European stock exchange will fix anything. Friedrich Merz is trying his hand at a failed strategy, says Matthew Lynn
-
Should UK schools ban smartphones?The effects of smartphones on young minds are disturbing, with calls for politicians to make school smartphone bans mandatory. Is radical action needed?
-
Albert Einstein's first violin sells for £860,000 at auctionAlbert Einstein left his first violin behind as he escaped Nazi Germany. Last week, it became the most expensive instrument not owned by a concert violinist