Mohsin Issa vacates executive role at Asda

18th Sep 2024 09:46

(Sharecast News) - Supermarket chain Asda announced on Wednesday that co-owner Mohsin Issa was stepping back from his executive leadership role to dedicate more time to his position as the sole chief executive officer of petrol station operator EG Group.

Despite stepping back from daily operations at Asda, it said Issa would remain a co-owner and continue to serve as a non-executive member of the company's board.

In the interim, Stuart Rose would assume Issa's executive responsibilities alongside Rob Hattrell and Asda's existing leadership team.

Rose, who is the chairman of the company, would work closely with Hattrell, a partner at private equity firm TDR Capital and a director on Asda's board.

Together, they would oversee the company's operations until a new CEO is appointed.

"We respect Mohsin's decision to move on from his role at Asda where his work is complete to be the sole CEO of EG Group," said Lord Rose.

"We are very grateful to Mohsin for the role he has played in overseeing Asda, including launching into the growth market of convenience stores and introducing a loyalty app now used by more than six million customers.

"He has laid the foundations to deliver a world-class IT infrastructure, strengthening Asda for the long term."

Over the last three years, Asda's shareholder group - which includes the Issa brothers and TDR Capital - has invested £3.8bn to strengthen the company's long-term market position.

The firm said that substantial investment had enabled it to expand its store footprint from 623 to 1,200 stores and food-to-go sites through organic growth and strategic acquisitions.

In addition to physical expansion, Asda had launched a successful loyalty app that now boasted six million active customers.

Mohsin Issa and his brother Zuber acquired Asda from US retail giant Walmart in 2021 in a deal valued at £6.8bn, with financial backing from TDR Capital.

The Issa brothers are also the co-founders of EG Group, which operates petrol stations and convenience stores across Europe, the United States, and Australia.

"I am very proud of the highly experienced team we have built, and the significant progress made to build a bigger and better Asda over the last three years, as well as our unwavering commitment to provide customers with uncompromising value," commented Mohsin Issa.

"Given these achievements and the significant strategic steps we have taken, I have decided now is the right time for me to step back from my oversight role at Asda to focus on EG Group as sole chief executive.

"It is a very exciting time for EG Group, and I am looking forward to focusing on the business while supporting Stuart, Rob and the leadership team in my capacity as a shareholder of Asda."

Reporting by Josh White for Sharecast.com.