TDR Capital Archives - Ireland's Forecourt & Convenience Retailer

Issa backed consortium may drop out of Boots bidding

Linda Stewart — Fri, 27 May 2022 10:40:57 +0000

A consortium backed by the billionaire Issa brothers is said to be considering dropping out of the bidding for Walgreens Boots Alliance Inc.’s international arm due to disagreements over price.

The EG Group owners, who were bidding together with TDR Capital, are now thinking about walking away following a request by Walgreens to increase their offer for the Boots drugstore chain.

The investor group could still re-enter the race if it can reach a compromise on price with Walgreens, an insider said.

The US company has been seeking a valuation of about £7bn ($8.8bn) for Boots, though bidders had set its worth around £5bn, Bloomberg News has reported.

The Issa-TDR group had been one of the two main suitors remaining in the contest. They were bidding for Boots through Asda Group Ltd., the British grocery chain they jointly own.

A consortium of Indian billionaire Mukesh Ambani’s Reliance Industries Ltd. and Apollo Global Management Inc. is the other serious party left in the race.

That group was still working to line up financing in recent days and hadn’t yet submitted a second-round offer, Bloomberg News reported this week.

Sycamore Partners are also said to have expressed interest in Boots earlier in the race.

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Issa brothers are frontrunners in £7bn race to buy Boots

Linda Stewart — Tue, 22 Mar 2022 09:38:56 +0000

EG Group owners, the Issa brothers, are frontrunners in a £7bn bidding war to acquire high street stalwart Boots.

Billionaires Mohsin and Zuber Issa, who own Asda and the EG Group, are top the list to take over the high street health and beauty stores.

If successful, they would be adding a further 2,200 stores in high streets and shopping centres to their expansive business catalogue.

The would-be buyers will be meeting with Boots bosses this week about any sale.

Boots, which employs 50,000 people, is currently owned by US-based company Walgreens Boots Alliance, which unveiled a ‘strategic review’ of the pharmacy chain in January.

The brothers, who also own Cooplands Bakery and have been attempting to acquire Caffé Nero, are reportedly competing against a host of private equity firms including TDR Capital, with whom they purchased Asda from Walmart in a £6.8 billion deal.

Apollo – which recently saw its bid to takeover supermarket Morrisons snubbed – and Sycamore Partners, who own Staples, are also in the running to buy 172-year-old company, founded in Nottingham by John Boot.

Previously interested bidders Bain Capital and CVC Capital Partners have already dropped out.

Currently owned by American company Walgreens, the sale of the chain of chemists led shops is reportedly going ahead in an auction process by Goldman Sachs.

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CMA gives Asda deal the green light – Issa brothers to sell off 27 petrol stations

Julie Nash — Wed, 16 Jun 2021 13:45:32 +0000

The UK’s competition regulator the CMA (Competition & Markets Authority) has accepted the offer from Asda’s prospective new owners to sell 27 petrol stations to finally push their takeover deal across the line.

In October, the billionaire Issa brothers and private equity backer TDR Capital agreed a £6.8 billion deal to buy the supermarket chain from Walmart. While that deal was completed, there was still one final stumbling block. They still needed approval from the CMA after it raised concerns in April that the takeover could lead to higher petrol prices for motorists in 36 locations.

The CMA has now confirmed that it has accepted the offer from the Issa brothers to sell 27 petrol filling stations to enable their £6.8bn Asda deal to the finish line. The CMA said it has accepted the offer to allay competition concerns – which means that the Interim Enforcement Order will be lifted, clearing the path for the final takeover to be signed off.

The new Asda owners must still select a buyer, or buyers, to purchase the forecourt sites, which must be approved by the CMA again.

In a joint statement, TDR Capital and the Issa Brothers said: “We welcome the CMA’s announcement today marking the end of its review process and acceptance of our proposed undertakings.

“We can now push ahead with our exciting plans for Asda and look forward to working with the Asda management team to invest in the business to drive growth, including continuing to accelerate Asda’s online offer, sourcing more food from UK farmers, and bringing enhanced convenience to customers.”

Asda chief executive Roger Burnley, said: “We welcome today’s announcement from the CMA, which means we can now fully embark on the next stage of our journey under new ownership and work with Mohsin, Zuber and TDR to build an even stronger Asda that gives our customers outstanding choice, value and service in our stores and online.”

EG Group, the forecourt giant owned by the Issa brothers, operates 395 petrol stations, while Asda owns 323 sites.

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