FT News Briefing A daring high-wire act: Inside the Asda buyout
Jun 5, 2023
Saudi Arabia's oil production cuts and Turkey's new finance minister signal shifts in global markets. The podcast delves into the bold buyout of Asda by the Issa brothers, revealing their daring debt strategies to expand their gas station empire. With rising interest rates looming, the financial maneuvers involved in Asda's £2.3 billion acquisition of EG Group raise questions about sustainability in the retail sector. Is Asda's future as bright as its past, or are challenges ahead?
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Saudi Arabia Cuts Oil Production
- Saudi Arabia cut oil production by a million barrels daily to support falling oil prices.
- This decision followed a tense OPEC+ meeting where African nations resisted production cuts.
Turkey's New Finance Minister
- Turkey’s new finance minister, Mehmet Simsek, pledges a return to “rational” economic policy.
- This move signals President Erdogan’s concern over Turkey's economic situation and declining support.
Asda Buyout
- The Issa brothers, with only £100 million of their own money, bought the nearly £7 billion company Asda.
- They achieved this through a leveraged buyout, partnering with TDR Capital and using extensive debt financing.