Asda owners in talks to merge EG Group with Canadian retail giant

Asda owner the Issas brothers
Asda owners the Issa brothers
// Asda owners the Issa brothers are in talks to merge the EG Group with Canadian business Couche-Tard
// The deal is understood to value EG at $16 billion and could unlock funds to finance the Issas potential acquisition of Boots

Asda owners the Issa brothers are in talks to merge their EG petrol forecourt business with Canadian convenience store giant Couche-Tard.

The two businesses have been in talks in recent weeks and sources told the Wall Street Journal that a deal would value EG Group at around $16 billion.

This could unlock funds to finance EG Group’s potential acquisition of health and beauty retailer Boots.

READ MORE: Asda owner claims value of stake has risen 20-fold as it prepares bid for Boots

A deal may not come to fruition, however, if the two companies do combine the group would have over $70 billion in annual sales and 21,000 fast-food restaurants, petrol stations and grocery stores.

WSJ said the talks have “run hot and cold” in recent weeks as the pair have been bartering over price.

Couche-Tard made an failed attempt to buy French supermarket giant Carrefour last year.

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