EG’s acquisition of the forecourt business is subject to the same CMA regulatory clearance being received by the group’s shareholders for their acquisition of Asda. Subject to these approvals, the transaction is currently expected to close in the second quarter of 2021.
The group added that financing options are currently being considered but, post-synergies, the transaction is expected to be leverage neutral and accretive to the group’s financial performance.
It said the “detailed integration plan will ensure a seamless transition” into EG Group’s UK operations, which has integrated four significant acquisitions since 2015.
The forecourts, which will remain part of the broader retail locations where they are situated, will continue to be Asda branded.
Zuber Issa CBE and Mohsin Issa CBE, co-founders and co-CEOs of EG Group, in a joint statement, said: “We are excited to have the opportunity to further strengthen our network in the UK through the proposed acquisition of Asda’s forecourt business, which will enhance our position as a major independent forecourt operator and provide a platform for future growth of the combined network.”
The two groups have now acquired a majority stake in Walmart’s wholly-owned UK business on a debt-free and cash-free basis, and the transaction is expected to be finalised in the first half of 2021 and is currently awaiting CMA approval.
Walmart will retain an equity investment in the business, with an ongoing commercial relationship and a seat on the board.