Asda reportedly paid £375.1m in interest as a result of its £6.8bn takeover deal last year according to recent accounts, The Times has reported.
According to the paper, its new owners have not yet taken any dividends from the business, yet due to the £4.06bn of debt used to finance the takeover, the company has paid £202m of interest on external debt, £106m on its lease liabilities, £56m on intercompany loans and £2m of additional undisclosed interest payments.
In October 2020, Walmart confirmed the Issa brothers and TDR Capital took equal shareholdings in an acquisition of Asda, which valued the supermarket at £6.8bn.
The two groups acquired a majority stake in Walmart’s wholly-owned UK business on a debt-free and cash-free basis.
The deal was later given the green light by the Competition and Markets Authority (CMA), which accepted the Issa Brothers offer to sell 27 of their 395 EG Group petrol filling stations in a bid to close the takeover.