Billionaire Issa brothers plot $35bn merger of Asda with their EG Group petrol stations
The billionaire brothers behind last year’s mammoth acquisition of Asda are now mulling a merger of the grocer with their petrol and forecourts business EG Group.
A merger between the two businesses is one of a few strategy options that the Blackburn-based entrepreneurs are considering for their global forecourt empire EG group.
If they were to go ahead and merge with Asda, the combined business would be valued at around $35bn, sources told Bloomberg, who first reported the news.
It follows the Issa brother’s acquisition of Asda for £6.8bn last year with private equity group TDR Capital.
Other options being considered by the tycoons include a sale of their Australian assets, or an IPO for their global gas station business, according to Bloomberg’s reports, but negotiations are ongoing.
Most recently, EG Group snapped up over 50 KFC sites across the south of the UK, involving around 1,600 employees, as well as drive-thru and non-drive-thru sites.
EG Group has been contacted for comment.