// Issa brothers are considering merging Asda with their forecourt empire EG Group
// The deal could value the combined businesses at more than £26 billion
Asda’s billionaire owners, the Issa brothers, are considering merging the supermarket with their forecourt empire EG Group, sources close to them have revealed.
The Issas are looking at a range of strategic alternatives for EG Group and a merger with Asda could value the combined business at more than £26 billion including debt, reported Bloomberg.
EG Group is an international chain of gas stations and convenience stores, which is backed by brothers Mohsin and Zuber Issa and private equity firm TDR Capital.
Asda and EG Group have been working together more closely in recent months, drawing up plans to expand foodservice at Asda locations and roll out ‘Asda On the Move’ convenience stores across EG Group filling stations.
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Combining the two companies would create a sprawling retail operation with a range of store formats from small outlets offering takeaway to large supermarkets.
A merger would also give EG Group greater bargaining power with suppliers and put it in a better position to compete with Canadian convenience store and petrol station giant Couche Tard, which was seen as the most likely buyer of EG Group until recently.
The Issa brothers took control of Asda in February this year, in a deal which valued Britain’s third-largest grocer at £6.8 billion.
Asda’s former parent company Walmart still holds a minority stake in the supermarket chain.
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2 Comments. Leave new
very good!!
So are the Issa Brothers buying the Asda forecourts or will these remain part of wall mart?