Walmart Inc. (WMT) – Get Report reached an agreement Friday to sell its underperforming grocery business in the United Kingdom for around $8.8 billon.
Walmart will sell the U.K. operations, known as ASDA, to a group of private equity buyers lead by TDR Capital and EG Group founders Mohsin and Zuber Issa, for an enterprise value — which includes group debts — of £6.8 billion.
Walmart said it will retain an unspecified equity stake in the U.K. business, as well as a seat on the ASDA board once the transaction is complete.
“At a time of evolution in the UK food retail sector, the new owners will continue to build a strong and successful business, benefiting from fresh capital and expertise, as well as valuable links with the world’s largest retailer,” Walmart said in a statement. “The Issa brothers, backed by TDR Capital, will support and accelerate Asda’s