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The billionaire owners of Asda are reportedly nearing the completion of a merger of the supermarket chain and its UK petrol stations, which are operated by EG Group.
According to The Sunday Times, the move forms part of efforts to cut the forecourt group’s debt burden.
The deal is reportedly worth £12bn, and would likely be structured as a takeover of EG UK by Asda, the Times said.
It added that the Issa brothers and TDR Capital, Asda’s private equity backer, aim to complete the merger by the end of April.
The merger would create a group with 581 supermarkets, 700 petrol forecourts and over 100 convenience stores.
According to reports, a merger could add more debt to the supermarket’s balance sheet, however, with Asda’s current net debt standing at £4.7bn already.
Reports of a potential merger first arose in January, with the Times reporting that the brothers were considering merging the company with the EG Group ahead of EG’s £7bn refinancing in 2025.
The Issa brothers acquired Asda two years ago in a £6.8bn deal and have opened 70 ‘Asda On the Move’ convenience stores in EG petrol stations.
