TDR Capital has agreed to increase its stake in Asda to become majority owner after buying out the shares owned by Zuber Issa.

The private equity giant invested in Asda alongside the Issa brothers in June 2021, when together they took majority ownership of the business.

It announced today it had agreed to acquire the entire 22.5% shareholding of Zuber Issa to raise its stake to 67.5%, with Mohsin Issa holding 22.5% and Walmart 10%.

The transaction is set to complete in the third quarter.

Zuber Issa said that following the transaction he would concentrate on the EG Group forecourt empire, which the borthers also own alongside TDR Capital.

Gary Lindsay and Tom Mitchell, managing partners of TDR Capital, said: “We first invested into Asda over three years ago, seeing a huge opportunity to cement its position as one of the UK’s leading retail brands.

“By combining our investment and sector expertise with Asda’s heritage of delivering value for customers, we have already made significant progress in transforming Asda. We have added a scale convenience business, grown Asda’s store footprint from 623 to 1,200 stores and food-to-go sites, and launched a hugely successful loyalty app, which now has six million active customers, accounting for around half of total sales.

“We remain focused on investing in Asda’s stores and online, as well as its colleagues through the highest pay in the traditional supermarket sector, to drive sustainable, long-term growth.

“As majority owners, we will continue to work closely with the Asda management team and colleagues across the business to support the ambitious strategy, which we believe is the right one to continue to move Asda forward.”

Asda chairman Stuart Rose said: “On behalf of the board, I welcome TDR’s increased investment in Asda – which is a clear sign of its commitment to the business. Asda’s heritage is in delivering great value for customers on a daily basis across its entire proposition from groceries to fashion and food-to-go – and the board has never been more committed to deliver on this promise.

“The board and shareholders continue to put in place the building blocks to position Asda for long-term success and that is good news for colleagues, customers, suppliers and other business partners.”

Mohsin Issa, co-owner of Asda, said: “Today’s announcement further underlines my own and TDR’s confidence both in Asda and the UK consumer market. As a shareholder group, we are excited about the growth journey we are on. Asda is an iconic British brand and we are committed to setting it up for long-term success and delivering great value for customers across the UK.

“To that end, I am incredibly proud of the investments we have already made in transforming the Asda business, including the launch of the new Asda Express convenience format, the Asda Rewards customer loyalty scheme and the £800m investment in a best-in-class IT infrastructure to bring new data and insight capabilities. Above all, I am proud and grateful for the everyday commitment and loyalty of our Asda colleagues and their dedication to our customers.”

Zuber Issa, co-founder and co-CEO of EG Group, said: “Since Mohsin and I, alongside TDR, took ownership of Asda, we have driven a period of significant investment and entrepreneurial growth activity. Notably, Asda acquired a market-leading UK convenience retail and foodservice store business from EG Group.

“With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired, and spend more time on my charitable endeavours. I am pleased to see TDR increasing its investment in Asda. With Mohsin and TDR’s ongoing focus and shareholding, I am confident that Asda will achieve its growth ambitions.”