TWO brothers and a private equity company have won the £6.8 billion takeover battle for supermarket giant Asda.

Mohsin and Zuber Issa, the billionaires behind petrol forecourt firm EG Group, and private equity firm TDR Capital agreed the deal with Walmart, the supermarket chain’s US owner, following a lengthy auction process.

Walmart will retain a minority stake in Asda as part of the agreement.

The new Lancashire owners have committed to keeping the retailer’s headquarters in Leeds and said they will invest to grow its convenience and online operations.

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Roger Burnley will stay on as chief executive, leading a board which will have representatives appointed by the Issa brothers, TDR Capital and Walmart.

Mr Burnley, who has led the grocer since the start of 2018, said that it is a “good day” for the future of Asda.

More than £1bn will be invested over the next three years to strengthen the business and its supply chain, the new owners said.

They also said they would maintain staff levels and keep prices low for customers.

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The Issa brothers said: “We are very proud to be investing in Asda, an iconic British business that we have admired for many years.

“Asda’s customer-centric philosophy, focus on operational excellence and commitment to the communities in which it operates are the same values that we have built EG Group on.

“Asda’s performance through the Covid-19 pandemic has demonstrated the fundamental strength and resilience of the business, and we are excited to support Roger and his team as they continue to reposition the business to drive long-term growth.”

Judith McKenna, of Walmart, said the deal “creates the right ownership structure for Asda”. It comes more than a year after a proposed merger between Asda and UK supermarket rival Sainsbury’s was torpedoed by regulators.