Zuber Issa has concluded a separation from his brother Mohsin by selling his stake in Asda to the supermarket chain’s private equity backer, TDR Capital.
As a result, TDR Capital will now hold a majority ownership of 67.5%, with Mohsin Issa and Walmart, the group's former owner, retaining 22.5% and 10% stakes, respectively. The billionaire brothers' EG Group had previously secured backing from TDR Capital to purchase Asda from Walmart four years ago for £6.8 billion. In a separate transaction, Zuber Issa, 52, has acquired EG Group’s remaining British petrol stations business for £228 million. He has also stepped down as co-chief executive of EG Group to become a non-executive director.
Reflecting on their collaboration, Zuber Issa stated, “We have had an amazing journey together building EG Group over the last 20 years and we both look forward to continuing to work closely together as fellow board members and shareholders in EG Group.” Reports this year suggested a rift between the brothers following Zuber Issa's decision to sell his stake in Asda. However, Mohsin Issa, 53, dismissed these claims in a BBC interview, asserting that the pair have "been on a journey and we have got a long way still to go."
The brothers founded EG Group in 2001 and sold the group’s UK and Ireland petrol stations business to Asda last year. While Mohsin Issa continues to run Asda, he plans to relinquish control once the grocer appoints a new chief executive.
