(Bloomberg) -- Petrol station entrepreneur Mohsin Issa has stepped aside from his executive role at Asda, the struggling British supermarket that he bought alongside his brother and private equity firm TDR Capital three years ago.
The decision comes after TDR acquired the 22.5% Asda stake held by Zuber Issa, Mohsin’s brother, in June. The move — first reported by Bloomberg News — gave the private equity firm majority control of one of the UK’s biggest grocery chains, formalizing the division of the Issas’ retail empire.
Mohsin and Zuber Issa, two of Britain’s most successful entrepreneurs, grew up in the northern English town of Blackburn and created a multi-billion pound international business by snapping up petrol stations and convenience stores.
Retail veteran Stuart Rose, chairman of Asda and former chief executive officer of Marks & Spencer, will assume Mohsin’s executive responsibilities, alongside director Rob Hattrell, a partner at TDR Capital, according to a statement Wednesday.
Mohsin will remain co-owner of Asda and a non-executive on the supermarket’s board, it added.
Rose said last month that the company needed a full-time and experienced retail executive to replace the older Issa brother. “In the nicest possible way, Mohsin’s work is largely complete,” he told the Telegraph newspaper.
Asda has been losing market share amid intense competition from discount retailers. The company is searching for a new CEO.
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