Asda co-owner Zuber Issa has sold his stake in the supermarket chain to co-owner TDR Capital, as the private equity firm becomes the majority owner.

The deal, which will complete later this year, brings the ownership of Asda to 67.5% by TDR Capital, 22.5% by Mohsin Issa, and 10% by Walmart.

Zuber Issa will also step down as co-chief executive of EG Group after reaching an agreement to acquire its remaining UK forecourt business and certain standalone food service locations for £228m.

EG said the proceeds of the divestment will be used to repay debt and help strengthen its balance sheet.

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Zuber will retain his existing shareholding in EG Group and as a non-executive director, while his brother Mohsin will become sole CEO.

Zuber Issa 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.”

Zuber’s exit from the supermarket comes as Mohsin is set to step back from the day-to-day operations of the chain.

Asda said it was continuing with its search to find a new permanent CEO to “lead the business in its next phase of growth”.

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