*

TDR to buy Zuber Issa's 22.5% stake, giving it 67.5%

*

Mohsin Issa retains 22.5, Walmart ( WMT ) 10%

*

Zuber Issa to buy EG's remaining UK forecourt business

*

Zuber Issa to step down as EG Group co-CEO

(Adds TDR quote in paragraph 7, detail in paragraphs 8 to 12)

By James Davey

LONDON, June 7 (Reuters) - Britain's Asda said on Friday

that private equity firm TDR Capital will gain majority

ownership of the supermarket group by acquiring Zuber Issa's

share in the business, which is still 10% owned by U.S. giant

Walmart Inc. ( WMT )

Buying Zuber Issa's 22.5% stake will give TDR 67.5%, with

22.5% still owned by his brother Mohsin. Asda said the

transaction is set to complete in the third quarter of 2024.

Asda, the UK's third largest grocer after Tesco ( TSCDF ) and

Sainsbury's ( JSNSF ), has been burdened by debt since the Issas

and TDR bought 90% of it from Walmart ( WMT ) in a 6.8 billion pound

($8.7 billion) deal that completed in 2021.

Last month, Asda reported a slowdown in quarterly sales

growth and an underperformance versus its bigger rivals. Monthly

industry data has shown Asda losing market share. It ended its

first quarter with net debt of 3.8 billion pounds.

Asda's strategy has focused on growing its convenience store

business, a new customer loyalty scheme and matching the prices

of discounters Aldi and Lidl on key items.

"We will continue to work closely with the Asda management

team and colleagues across the business to support the ambitious

strategy," TDR managing partners Gary Lindsay and Tom Mitchell

said in a statement.

Asda, which has been without a CEO since Roger Burnley left

abruptly in 2021, said on Friday it was undertaking an

"extensive international executive search" to find one.

Last October, Asda completed the acquisition of the majority

of EG Group's UK & Ireland petrol forecourt business for an

enterprise value of 2.07 billion pounds.

EG Group, which is also owned by TDR and the Issas, said on

Friday it would sell its remaining UK forecourt business to

Zuber Issa for 228 million pounds.

On completion, Zuber Issa will step down as co-CEO of EG

Group and become a non-executive director, leaving Mohsin Issa

as sole CEO.

There have been media reports of a rift between the

brothers. However, Mohsin Issa said he would continue to work

with Zuber on their personal co-investments, family office

philanthropy and Issa Foundation projects.

EG Group also reported a 9% increase in first quarter

underlying EBITDA to $178 million.

($1 = 0.7813 pounds)