// Deloitte resigns as Asda owner EG Group’s auditor
// EG Group sealed a £6.8 billion deal to acquire Asda last month
// KPMG has been appointed to replace Deloitte
Asda owner EG Group’s auditor Deloitte has reportedly stepped down with immediate effect shortly after the petrol stations group sealed a £6.8 billion deal to acquire the grocer.
The Big 4 accountancy firm has resigned as auditor for EG Group following concerns over its governance and internal control, Financial Times reported..
EG Group has informed bondholders that KPMG has been appointed to replace Deloitte as its new auditor following the abrupt resignation.
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EG Group owns around 6000 petrol stations and posted nearly €20 billion (£18 billion) in revenue last year.
Deloitte’s reason for resignation remains unclarified, though governance concerns had increased, with Deloitte unsatisfied with EG Group’s internal controls not keeping pace with its growth.
EG maintained that Deloitte signed a clean audit for EG Group’s 2019 financial statements, and there have been no disagreements on any auditing or accounting matters.
Deloitte has served as EG Group’s auditor for the past four years.
EG Group, which sealed a £6.8 billion takeover bid for the UK’s third largest grocer Asda earlier this month, had no plans to change its auditor.
In fact, Deloitte was reappointed to the role as confirmed in Asda’s annual report in July.
Over the weekend, it was reported that EG Group was looking to sell off the supermarket giant’s £3 billion clothing business, George.
The sale of George is among a number of strategies being examined by the new owners Zuber and Mohsin Issa, alongside the possibility of separating off its alcohol business and having it run by a third party.
In September, Asda was reported to be restructuring its George division, resulting in 50 redundancies made at its head office in Leicester.