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The EG Group, owned by petrol station billionaire brothers Zubin and Moshin Issa, is reportedly among a number of interested private equity firms vying to acquire a majority stake in Asda.
According to The Sunday Telegraph, the EG Group is one of a number of interested parties in acquiring a majority stake in the ‘Big Four’ supermarket from Walmart.
The reports suggest it is to face competition from private equity firms including Apollo and TDR Capital, as well as from American buyout firm Lone Star Funds.
The news comes after Walmart revealed it is in talks over a potential sale of its stake in Asda last week following “inbound interest”.
Walmart and Asda confirmed that both are considering whether there is an “opportunity” for a third party to invest in the UK grocer, alongside Walmart, in order to “support and accelerate the delivery of Asda’s strategy and position [it] for long term success”.
The company said it was in discussions with a small number of “interested parties” which share Walmart and Asda’s “commitment and passion to growing the business”. However, Walmart said no decisions have been made and it will not be “commenting further on the discussions”.
At the time a joint statement by Walmart and Asda read: “Walmart firmly believes that an IPO is an attractive long-term objective for Asda. Asda is a great business with a clear strategy for the future and Walmart is committed to ensuring it has the resources and support it needs to deliver that strategy.
“Walmart has a clear international strategy around ‘strong local businesses, powered by Walmart’ – which involves a number of different ownership arrangements depending on the needs of its different markets.”
Walmart has reportedly hired Rothschild to advise on a potential sale of a stake in the chain or a stock market flotation.
