Issa brothers offer to sell 27 petrol stations to resolve Asda takeover competition dispute
The Issa brothers, the billionaire businessmen who recently bought Asda, have agreed to sell 27 of their EG Group petrol stations to resolve a competition dispute related to the takeover.
Last month the Competition and Markets Authority launched an investigation into the Issa brothers and TDR Capital’s takeover of the supermarket, saying the deal raises issues in relation to the supply of road fuel in 36 areas across the UK.
Issa brothers and TDR Capital also own EG Group, which operates 395 petrol stations in the UK, while Asda owns 323 sites.
The watchdog said it is concerned that the merger could lead to higher prices for motorists.
The CMA said today that there were “reasonable grounds” to consider that the offer to sell 27 petrol stations, or a modified version of the offer, could be accepted.
“As is usual in cases such as these, the CMA now has a period of 40 days to work through the detail of the proposed divestitures and therefore we are restricted in the level of information we are able to provide on specific sites,” the Issa brothers and TDR said today.
“However, we have been comforted by the significant interest we have already received from potential buyers during this process, demonstrating the strong growth potential of our forecourts and the liquidity in the market.
“Over the coming months, we are confident that we will be able to agree a sale to suitable operators to take over all identified sites, and we will share more information in due course.”