MPs call for answers on Asda’s response to cost-of-living crisis

Leeds-headquartered Asda has faced questions from MPs over whether it can do more to control rising prices.

In a letter to one of the chain’s co-owners, the chair of the Commons business committee called for an explanation of its “complex” company structure and details about loans and investments.

It follows Asda executives being grilled by politicians earlier this summer over concerns about high fuel prices.

The billionaire Issa brothers acquired Asda in 2020 in a £6.8bn deal. They merged the chain last May with the UK and Irish division of their petrol forecourt business, EG Group.

Unions have flagged up concerns over the takeover – which doubled Asda’s debt levels – warning the deal could leave the supermarket struggling with rising interest rates.

The letter from the chair of the Commons business committee, Labour MP Darren Jones, addressed to Mohsin Issa, asks whether Asda’s “complex company structure” may “restrict your ability to help meet cost-of-living pressures on your customers”.

It also wants extra information about levels of investment and loans from EG Group, which helped pay for the contest 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.

The letter also quizzes Mr Issa on whether millions of euros in interest-free loans were used to purchase private jets.

“These questions are to help us understand if you are enabling Asda to do all that it can to help keep costs down during a cost-of-living crisis,” it says.

An Asda spokesman told the BBC that it would continue to “co-operate fully” with the committee’s inquiry and will respond to its follow-up questions.

He said: “Asda’s owners are committed to the long-term sustainable growth of the business and are investing in both supporting customers and colleagues during these challenging times.”