Asda eyed by private equity firms for £7bn takeover

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Asda Walmart stake sale private equity firms EG Group
Walmart could decide to keep Asda for longer if bids do not meet its expectations
// Asda attracts several private equity firms for a potential takeover
// Apollo Global Management, TDR Capital & Lone Star Funds are thought to be in interested line-up
// No final decisions have been made

Asda has reportedly attracted several private equity firms for a potential takeover which could value it at over £7 billion.

Apollo Global Management, TDR Capital and Lone Star Funds are thought to be in interested line-up to acquire the Big 4 grocer from US parent company Walmart, following a second round of bidding, Bloomberg reported.

The news comes as Walmart said it would proceed with the planned sale of Asda after attracting initial bids from the three buyout firms, even as tightening credit threatened to hamper debt-fuelled deal making.


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Earlier this month, Asda was thought to be surrounded by petrol station tycoons and private equity houses after Walmart confirmed it was in talks to sell its stake the same week.

Potential bidders included entrepreneurs Zuber and Mohsin Issa, the billionaire founders of EG Group.

TDR is now teaming up with EG Group, its portfolio company.

Meanwhile, some suitors are concerned about the possibility that the market volatility triggered by the coronavirus outbreak will affect their access to cheap financing.

No final decisions have been made, and Walmart could decide to keep the business for longer if bids do not meet its expectations.

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