Walmart set to choose preferred bidder in Asda deal

Walmart, which has owned Asda for the last 21 years, is deciding between private equity giants Apollo and TDR Capital, both of whom have submitted bids to become the majority stakeholder.

Any deal would see Asda valued at around £6.5bn.

Should Apollo win the bid, it plans to split Asda into an operating company and a property company, according to The Times.

The firm has looked to secure £3.3bn of debt against Asda’s stores and a further £500m against its properties.

Apollo has said it would look to float Asda in three to five years’ time.

TDR Capital is bidding in partnership with billionaire brothers Mohsin and Zuber Issa, who own the Euro Garages petrol station empire and are said to be putting their own money into the deal.

The third bidder, Lone Star, withdrew this month after a dispute over the potential costs of a standing equal-pay lawsuit against the supermarket.

In a long-running case, Asda’s largely female checkout staff claimed they had been discriminated against as the mostly male distribution centre workers are paid more.

Walmart asked the US Supreme Court to overturn the case in July, but if it loses the retailer could be liable for hundreds of millions of pounds in back pay.