Walmart has completed the sale of UK grocery chain Asda to global convenience and forecourts retail business co-founders the Issa brothers for £6.8bn.

Under the new ownership structure, the co-founders and co-chief executives of EG Group, Mohsin and Zuber Issa, and investment vehicle TDR Capital will take a majority ownership stake in Asda

Walmart will retain an equity investment and a seat on the Asda board as part of an “ongoing commercial relationship”. 

Asda will continue to be led by current chief executive Roger Burnley, who will form part of the retailer’s board “alongside representatives appointed by the Issa brothers, TDR Capital and Walmart”. 

The group also said that Asda will remain headquartered in Leeds “and will continue to be a significant contributor to the UK economy and tax base”. 

In confirming the £6.8bn deal, the brothers, who co-founded and own the EG Group, have committed to investing more than £1bn in Asda’s supply chain over the next three years to strengthen the business, increase its proportion of UK-based suppliers and “continue to offer low prices across its stores and product categories for customers”. 

New owners Mohsin and Zuber Issa said: “We are very proud to be investing in Asda, an iconic British business that we have admired for many years. Asda’s customer-centric philosophy, focus on operational excellence and commitment to the communities in which it operates are the same values that we have built EG Group on.

“Asda’s performance through the Covid-19 pandemic has demonstrated the fundamental strength and resilience of the business, and we are excited to support Roger and his team as they continue to reposition the business to drive long-term growth.

“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.

“After a successful period as part of Walmart, we are looking forward to helping Asda build a differentiated business that will continue to serve customers brilliantly in communities across the UK.”

Asda’s Burnley said: “This new ownership opens an exciting new chapter in Asda’s long heritage of delivering great value for UK shoppers. With our combined investment, expertise and ambition, Asda, Walmart, the Issa brothers and TDR have an incredible opportunity to accelerate our existing strategy and develop an even more exciting offer for our customers, as well as strengthen our business for our colleagues.

“In a constantly changing retailing environment, our new ownership will further enhance our resilience, while creating significant, additional opportunities to drive growth. 

“For Asda colleagues, a strong and growing business is important for our long-term future. I want to thank every single one of our people for the incredible work they do serving our communities, and together our focus will remain on building a better Asda for the benefit of all.”