Issa Brothers double-up Asda and EG Group to create forecourts giant
Asda has confirmed plans to acquire the UK and Ireland division of petrol giant EG in a deal that will create a UK consumer giant with £30bn-worth of revenues a year.
The supermarket, which is headed by the billionaire Issa brothers, has purchased the brothers’ other business, the EG Group, for £2.27bn.
Asda is now set to own nearly 1,400 outlets split between a range of supermarkets, petrol stations and convenience stores.
Talks about the deal have been circulating for months, with reports in The Sunday Times, initially breaking the news.
There have been concerns from the sector that an acquisition of this size could create issues with other competitors and raise fuel prices for consumers.
Asda previously acquired 130 petrol sites from Co-op for £611m but handed 13 sites back after it sparked competition concerns from the CMA.
However, the supermarket said it remains “committed to the lowest supermarket fuel prices”.
Mohsin Issa, co-owner of Asda, said: “Asda is committed to saving customers precious time and money across their shopping baskets and on the forecourt.
“The combination of Asda and EG UK&I will be positive news for motorists, as we will be able to bring Asda’s highly competitive fuel offer to even more customers.”
EG Group will continue to operate in the USA, Australia, Germany, France, Italy, the Netherlands, Luxembourg and Belgium, whilst also retaining around 30 UK sites.
The Cooplands bakery business and certain other foodservice brands will also be retained.