Walmart Inc. has found new buyers for its U.K. supermarket chain.
The retail giant is selling the majority stake in Asda Group Ltd., Britain’s third-largest grocery chain, to an investment group for an enterprise value of $8.8 billion. The group is composed of private equity firm TDR Capital and two U.K.-based billionaires, Mohsin and Zuber Issa, founders and co-CEOs of global convenience store retailer EG Group, which has more than 6,000 locations. (In 2019, EG Group completed its acquisition of U.S. c-store chain Cumberland Farms, bringing its U.S. footprint to 1,680 c-stores and gas stations across 31 states.)
In April 2019, Walmart’s $10 billion deal to merge Asda with rival J Sainsbury was blocked by U.K. regulators, saying it would lead to higher prices in stores and online and at many petrol stations along with lower quality goods. Asda, which Walmart bought in 1999, has more than 600 stores across the U.K.Chain Storeage