A man walks past the toilet paper in an Asda supermarket in Walthamstow, east London on September 23, 2020.


tolga akmen/Agence France-Presse/Getty Images

Walmart on Friday announced a deal to sell its U.K. supermarket chain Asda, which finally rids the U.S. retailing giant of a unit it has long wanted to sell.

Walmart
WMT,
+2.26%

said it is selling its U.K. supermarket chain Asda in a deal that values it £6.8 billion ($8.8 billion) net of debt and cash. The buyers are the Issa brothers, who co-own a convenience store chain, and the private-equity group TDR Capital.

Walmart said it would retain an equity investment in Asda and a seat on the board.

The new owners say they will invest over £1 billion in the next three years in Asda, to further strengthen the business and its supply chain.

Last year, Walmart’s attempt to merge Asda with rival J Sainsbury
SBRY,
-0.13%

was blocked by U.K. regulators.

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