Retail bosses square up in £6.5bn bidding war for Asda
Two veteran UK retail bosses are set to go head-to-head in a dramatic £6.5bn private equity bidding war for supermarket chain Asda.
Former Debenhams chief executive Rob Templeman is said to be working with Apollo Global Management, while Paul Mason, who served as Asda boss 20 years ago, has teamed up with Lone Star Funds.
The two sides are now set for a showdown, with formal bids for the UK’s third-largest grocery retailer set to be tabled early next month, according to Sky News, which first reported the move.
Asda’s US owner Walmart has restarted talks over a sale of a majority stake in the supermarket chain more than a year after the competition regulator blocked its planned mega-merger with Sainsbury’s.
The new auction is expected to be wrapped up by the end of the year, with Walmart retaining a minority stake.
Asda attracted a valuation of £7.3bn at the time of its failed merger with Sainsbury’s, though it is thought unlikely that a private equity takeover would secure such a high price tag.
Templeman has a long-standing relationship with Apollo, working with the private equity firm during his time as chair of Gala Coral, the betting company that is now part of GVC.
Aside from his time at the helm of Debenhams, he has also run Halfords, Homebase and Harveys. He is now chair of roadside rescue group RAC.
Mason served as chief executive of Asda until 2001, before leading rival supermarket chain Somerfield.
He has also chaired New Look, Matalan, Cath Kidston and Dr Martens.
The sale process comes amid increased competition in the UK grocery market, with shoppers increasingly turning to online services.
But the UK’s major supermarkets have enjoyed strong trading this year as Brits stocked up on groceries during the coronavirus lockdown.