MPs have questioned Asda over whether issues over its finances are stopping it doing more to tackle soaring prices.
In a letter to one of its co-owners, the chair of the business committee demanded an explanation of the grocer’s “complex” company structure and details about loans and investments.
It comes after Asda executives were grilled by politicians in July over concerns about high fuel prices.
It comes after Asda executives were grilled by politicians in July over concerns about high fuel prices.
The billionaire Issa brothers bought Asda in 2020 in a £6.8bn deal. They then merged it last May with the UK and Irish division of their petrol forecourt business EG Group, greatly expanding Asda’s network of filling stations.
But unions have raised concerns that the takeover, which doubled Asda’s debt levels, could leave the supermarket struggling with rising interest rates.
The letter from the chair of the Commons business committee, Labour MP Darren Jones, is addressed to Mohsin Issa. It asks whether Asda’s “complex company structure” may “restrict your ability to help meet cost-of-living pressures on your customers”.
It also seeks extra information about levels of investment and loans from EG Group, which helped fund the battle to buy Asda from the US supermarket giant Walmart.
“When you and your brother bought Asda from Walmart for £6.8bn, you personally invested £200m. Where did this finance come from?” Mr Jones’ letter reads.
MPs have questioned Asda over whether issues over its finances are stopping it doing more to tackle soaring prices.
It comes after Asda executives were grilled by politicians in July over concerns about high fuel prices.
In a letter to one of its co-owners, the chair of the business committee demanded an explanation of the grocer’s “complex” company structure and details about loans and investments.
The billionaire Issa brothers bought Asda in 2020 in a £6.8bn deal. They then merged it last May with the UK and Irish division of their petrol forecourt business EG Group, greatly expanding Asda’s network of filling stations.
It comes after Asda executives were grilled by politicians in July over concerns about high fuel prices.
It comes after Asda executives were grilled by politicians in July over concerns about high fuel prices.
The billionaire Issa brothers bought Asda in 2020 in a £6.8bn deal. They then merged it last May with the UK and Irish division of their petrol forecourt business EG Group, greatly expanding Asda’s network of filling stations.
But unions have raised concerns that the takeover, which doubled Asda’s debt levels, could leave the supermarket struggling with rising interest rates.
The letter from the chair of the Commons business committee, Labour MP Darren Jones, is addressed to Mohsin Issa. It asks whether Asda’s “complex company structure” may “restrict your ability to help meet cost-of-living pressures on your customers”.
It also seeks extra information about levels of investment and loans from EG Group, which helped fund the battle to buy Asda from the US supermarket giant Walmart.
“When you and your brother bought Asda from Walmart for £6.8bn, you personally invested £200m. Where did this finance come from?” Mr Jones’ letter reads.
#Asda #owners #quizzed #action #curb #price #rises
Note:- (Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor. The content is auto-generated from a syndicated feed.))
