The billionaire Issa brothers are set to make their mark as Asda’s new owners by reportedly planning to open over 300 Asda convenience stores across their EG Group estate. According to reports, Mohsin and Zuber Issa are planning to roll out “Asda on the Move” stores to 400 UK forecourts, following a successful trial of five of these sites.
The brothers acquired the Big 4 grocer last year with private equity firm TDR Capital after Walmart agreed to a £6.8 billion sale. Under the new ownership structure, the Issa brothers and TDR Capital acquired the majority ownership stake in the supermarket.
The news follows reports of convenience retailer McColl’s preparing a £30 million equity raise to drive the expansion of its Morrisons Daily store format. McColl’s, a wholesale partner of Morrisons which operates a 1,200 store network, is currently converting hundreds of its sites to Morrisons Daily formats.
The convenience store group has confirmed the speculations and said it is “currently exploring options relating to a potential capital raise to increase the number of its Morrisons Daily store conversions, accelerate the pace of roll-out of its Morrisons Daily store conversion programme, and strengthen its balance sheet”.
Asda spokesperson has refused to comment on the matter. “Given this is a speculative piece with little detail behind it we are not providing any comment,” Asda spokesperson said. The news comes a week after it emerged that Lord Stuart Rose is reportedly set to become the next chair at Asda as the search for a chief executive for the Big 4 retailer continues.
Several reports suggest that Rose, who was Marks & Spencer’s boss between 2004 and 2011, is being considered for the chair role. Rose is already the chair at EG Group, the Issa brothers’ petrol forecourt empire. Speculation is also rife that retail veteran Ian McLeod could be returning to Asda as its new chief executive under new owners, the Issa brothers and TDR Capital.
A former boss of Halfords and Australian grocery giant Coles, McLeod had previously been part of the team that saw Asda avoid bankruptcy. M&S Food chief Stuart Machin and Morrisons’ chief operating officer Trevor Strain also have been linked with taking the chief executive role as Asda boss Roger Burnley reportedly left the supermarket giant following the completion of its £6.8 billion takeover.
