EG Group today said they have entered into a binding agreement to divest 27 petrol stations to Park Garage Group, almost clearing way for the completion of the acquisition of the supermarket chain Asda by the group owners.
The Competition and Markets Authority (CMA) has earlier ruled that the Asda takeover by Mohsin and Zuber Issa and private equity firm TDR Capital, owners of EG Group, could lead to higher petrol prices in some parts of the country, following its initial investigation into the £6.8 billion deal.
The 27 sites in the deal include 26 sites required by the CMA to be divested, plus one other non-core location. EG Group said negotiations in connection with the single additional site required to be divested by the CMA are in an advanced stage, adding that it expects to be in a position to complete the transaction in the coming weeks.
“We received significant interest in the sites we marketed, reflecting how these high-quality assets have been acquired, developed and invested in by EG Group over the last few years. We are pleased that the sites will be going to an established industry operator in Park Garage Group, a family-run business that is growth orientated,” Zuber and Mohsin Issa, co-founders and co-CEOs of EG Group, said.
All existing EG colleagues employed at the 27 sites will be transferred to Park Garage Group.
Balraj Tandon and Sunil Tandon, chairman and managing director of Park Garage Group, respectively, said in a joint statement: “We are delighted to have reached an agreement to acquire these sites, particularly due to their quality, which has been cultivated by EG Group.
“The acquisition underlines our commitment to growth and innovation, and will enable our sons, Manoj Tandon and Hemant Tandon, to further build our industry footprint. We would like to thank EG Group for working seamlessly with us on this acquisition.”
The development follows EG Group’s acquisition yesterday of the UK’s second-largest bakery chain Cooplands and the acquisition of 52 KFC restaurants in the UK from Amsric Group last week.
