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Asda has announced that it has acquired the majority of EG Group’s UK and Ireland fuel, foodservice, grocery and merchandise business in a deal worth £2.27bn.
The deal means that Asda will take ownership of around 350 petrol stations and more than 1,000 food-to-go locations.
The UK’s third largest supermarket Asda and EG Group are both owned by brothers Zuber and Mohsin Issa and the private equity group TDR Capital.
As a result Asda will now have 170,000 employees, nearly 600 supermarkets and 700 petrol forecourts.
Stuart Rose, chairman of EG Group, said: “Zuber and Mohsin Issa have spent the last two decades creating the best convenience retailing business in the UK. Their journey from one site to creating a global business has been extraordinary and reflects their vision, and ability
to be a genuine disruptor in the forecourts market, turning these locations into destinations in their own right with food, coffee and convenience.
“Following this deal, they will remain in nine countries, with an even stronger business, which is able to focus on international growth.”
Zuber Issa added: “This transaction with Asda represents an important strategic step for EG Group. Following this sale, EG Group will benefit from a significantly strengthened balance sheet, supporting the continued roll out of its successful convenience retail, fuel and foodservice strategy and drive innovation to transform the consumer experience.
“This includes the ongoing investment and expansion of our EV charging business, evpoint, as well as hydrogen and other sustainable fuel retail infrastructure, which we continue to see as a significant future opportunity. I am confident the UK&I business will go from strength to strength under Asda’s ownership.”
EG Group was founded in 2001 by the Issa brothers in Blackburn.
