Asda’s new owners Issa brothers and TDR are reportedly considering spinning off the grocer’s fashion label George.
The Times today reports senior industry sources saying that George ‘was outside the area of expertise of the Issa brothers and TDR and they would be more comfortable licensing the brand or introducing more fashion partnerships to Asda’s shops to use excess space’.
The billionaire Issa brothers and their private equity backers recently completed their £6.8 billion acquisition of Asda.
In a separate announcement, the Competition and Markets Authority (CMA) said it has set April 20 as a deadline for its preliminary decision on the move. In October, the suitors announced the deal to buy the majority stake in the UK’s third biggest grocery, although previous owner Asda will still hold a minority stake.
The CMA launched an investigation in December and initially set a February 18 deadline for its Phase One probe, before pushing its timetable back in order to look at additional documentation.
Since the inquiry was launched, the Issa brothers and TDR have confirmed plans to sell Asda’s petrol forecourt business to its own EG Group for £750 million.
The CMA will also consider the forecourt deal as part of its inquiries.
The update also comes days after the new owners completed a £2.75 billion junk bond sale to help fund the Asda acquisition.
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