The British billionaire Issa brothers and private equity group TDR Capital have agreed to buy the supermarket chain Asda from Walmart for an enterprise value of £6.8 billion and plan to roll out more smaller stores.
The deal will enable British Asians Mohsin and Zuber Issa, who founded petrol station operator EG Group nearly two decades ago, to take Asda back under British ownership for the first time since 1999, when Walmart paid £6.7bn for the business.
The new owners want to drive growth at Britain's third-biggest supermarket chain by expanding its presence into smaller neighbourhood shops to add to its large supermarket format, bringing it more in line with competitors Tesco and Sainsbury's which offer both.
Walmart will retain an unspecified equity investment in the business, an ongoing commercial relationship and a seat on the board, while British retail veteran Roger Burnley will remain in charge at Asda.
"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," the brothers said.
The new owners will invest more than £1bn in the next three years in Asda to keep prices low and to protect its supply chains.
Chancellor Rishi Sunak welcomed the deal for Asda which will retain its headquarters in Leeds.
Britain's highly competitive supermarket sector has been upended this year by the Covid-19 crisis which sparked a jump in sales - and costs - as shoppers stocked up on goods during lengthy lockdowns.
While Asda's sales increased, the chain still lagged market leader Tesco, Sainsbury's, and smaller rival Morrisons.
All of the so-called big-four supermarket chains have also faced fierce competition from German discounters Aldi and Lidl in recent years.
In response, Walmart previously sought to sell Asda to Sainsbury's for £7.3bn but the deal was thwarted by Britain's competition regulator last year.
The lower price announced today (2) reflects the integration benefits that a merged Asda-Sainsbury's would have produced.
TikTok is to lay off hundreds of employees from its London office, with the bulk of the cuts affecting content moderation and security teams, according to reports estimating over 400 job losses by the Communication Workers Union. Online safety campaigners, along with TUC and CWU leaders, have urged Chair Chi Onwurah MP to investigate the impact of TikTok’s actions on UK online safety and workers’ rights.
The strategic shift is part of a broader reorganisation of TikTok's global trust and safety operations, aiming to streamline processes and concentrate operations in fewer locations worldwide. The move has prompted significant criticism from safety advocates and politicians, raising concerns about the platform's commitment to child protection and online safety.
Safety roles cut
People working in the trust and safety team are most likely to lose their jobs as part of a global restructuring that prioritises AI- assisted moderation over human oversight. TikTok is moving UK content moderation roles to Europe as it rely on AI, putting hundreds of jobs at risk despite rising regulatory pressure under the Online Safety Act.
The timing is particularly controversial given recent revelations about platform safety failures. Report from Global Witness, a not-for-profit organisation have accused TikTok of "sacrificing online safety" through these AI-driven cuts, with investigations revealing that the algorithm has directed minors toward explicit content a serious breach of child protection standards.
The Communication Workers Union and online safety professionals have urged UK MPs to investigate the restructuring, warning that job losses could expose children to harmful material. The cuts represent a fundamental shift in TikTok's operational philosophy, prioritizing cost efficiency over comprehensive content review.
TikTok's restructuring putting several hundred jobs at risk marks a significant move as it shifts to AI-assisted content moderation. While the platform claims the changes will improve efficiency, the decision has sparked debate about whether algorithmic moderation adequately protects vulnerable users. As regulators scrutinise social media platforms increasingly, TikTok's focus on automation rather than human expertise may face mounting political and regulatory challenges in the UK and beyond.
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