The supermarket giant has been purchased by the billionaire Issa brothers, from Blackburn, in a £6.8bn deal
Asda has pledged to move to 100% British sourced beef as it announced a takeover by a pair of Blackburn based brothers.
A consortium of Zuber and Mohsin Issa and private equity firm TDR Capital will take a majority stake in Asda from the US based Walmart.
The brothers are the founders and chief executives of EG Group.
The supermarket will return to majority UK ownership for the first time in two decades.
It follows a failed merger with Sainsbury’s, which was blocked on competition grounds.
Under its new owners, Asda has pledged to increase the proportion of UK-based suppliers and the volume of products such as chicken, dairy, wheat and potatoes purchased from UK suppliers.
It also made a commitment to source 100 per cent British beef.
And it also wanted to continue to offer low prices across its stores and product categories.
It also said it would retain Asda’s industry-leading payment terms for suppliers.
Roger Burnley, chief executive officer of Asda, said it opened an ‘exciting new chapter’.
“With our combined investment, expertise and ambition; Asda, Walmart, the Issa brothers and TDR have an incredible opportunity to accelerate our existing strategy and develop an even more exciting offer for our customers as well as strengthen our business for our colleagues.
“In a constantly changing retailing environment, our new ownership will further enhance our resilience, whilst creating significant, additional opportunities to drive growth.”
The Issa brothers said they were proud to be investing in an ‘iconic British business’.
“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,” they said.
They added they believed their experience and expertise on convenience and brand partnerships could accelerate and execute the growth strategy.
“After a successful period as part of Walmart we are looking forward to helping Asda build a differentiated business that will continue to serve customers brilliantly in communities across the UK.”
NFU deputy president Stuart Roberts said: "It is fantastic to see Asda’s new owners already making such strong commitments when it comes to championing British produce.
“The commitment to 100% British beef and increasing its proportion of UK suppliers across a range of products demonstrates recognition of the values at the heart of British food production – quality, traceability and sustainability.
“This is a very exciting time for Asda and I look forward to continuing our work with the Asda team into the future."