Skip to content
Search
AI Powered
Latest Stories

Asda to buy UK and Ireland division of EG Group for £2.27 billion

Asda to buy UK and Ireland division of EG Group for £2.27 billion

Supermarket group Asda said on Tuesday it would acquire petrol station operator EG Group's UK and Ireland business for an enterprise value of £2.27 billion.

The deal will create a company with combined revenues of nearly £30 billion.


Asda, Britain's third-largest grocer, and EG are both owned by brothers Zuber and Mohsin Issa and private equity group TDR Capital.

“Asda is committed to saving customers precious time and money across their shopping baskets and on the forecourt. The combination of Asda and EG UK&I will be positive news for motorists, as we will be able to bring Asda’s highly competitive fuel offer to even more customers,” Mohsin Issa said.

Zuber Issa added: “This transaction with Asda represents an important strategic step for EG Group. Following this sale, EG Group will benefit from a significantly strengthened balance sheet, supporting the continued roll out of its successful convenience retail, fuel and foodservice strategy and drive innovation to transform the consumer experience. This includes the ongoing investment and expansion of our EV charging business, evpoint, as well as hydrogen and other sustainable fuel retail infrastructure, which we continue to see as a significant future opportunity.

“I am confident the UK&I business will go from strength to strength under Asda’s ownership. Over the last 22 years we have built a business that I am extremely proud of, and EG Group will continue to maintain an important base in the UK, supporting the global business from our home in Blackburn.”

Asda said it would acquire around 350 petrol stations and over 1,000 food-to-go locations in the deal, which is expected to close in the fourth quarter.

The supermarket said the acquisition will open up significant growth opportunities in the growing convenience and foodservice markets, building on the strategic partnership already in place with EG Group.

There have already been 166 EG sites successfully converted to ‘Asda on the Move’ which Asda said gives it the confidence in the conversion strategy integral to the expected synergies of the combination. As part of the transaction, all acquired EG UK&I sites will be brought under the Asda fascia.

Asda added that it plans to invest more than £150 million within the next three years to fully integrate the combined business.

As part of the transaction the shareholders are providing around £450 million of additional equity to fund the transaction, it said.

EG Group said the proceeds from the deal, together with the net proceeds of $1.4 billion from the recent sale and lease back transaction in the US, will be used to repay debt and the group's net leverage will fall to below 5 times, in line with the recently announced financial policy and deleveraging strategy.

EG Group will retain around 30 UK sites – including the first Euro Garages site in Bury – which are close to the group headquarters and frequently used to trial innovation. The Cooplands bakery business and certain other foodservice brands will also be retained.

Mohsin Issa will continue to lead Asda through its ongoing transformation programme and integration of the EG UK&I business.

He will be supported by Asda’s existing leadership team, which includes Michael Gleeson as Chief Financial Officer, who took up his post on 24 May, while the retailer commences search to appoint a new group CEO.

Asda also today reported strong like-for-like sales growth and market share gains from the traditional ‘big four’ competitors. Like-for like sales increased by 7.8 per cent in the three months to the end of March compared with the previous year, while total revenues excluding fuel increased by 8 per cent to £5 billion.

More for you

A woman walks past a window display promoting an ongoing sale

A woman walks past a window display promoting an ongoing sale, on December 13, 2024 in London, England.

Photo by Leon Neal/Getty Images

Retail sales disappoint before Christmas

UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.

Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.

Keep ReadingShow less
Sybren Attema, and Betty Eekchaut

Presidents Sybren Attema, FrieslandCampina, and Betty Eekchaut, Milcobel

Yazoo parent FrieslandCampina announces merger with Belgian rival Milcobel

Dutch dairy collective FrieslandCampina has agreed to merge with smaller Belgian rival Milcobel, creating a leading dairy cooperative.

FrieslandCampina, whose brands include Yazoo and Chocomel, said the merger will provide the foundation for a future-oriented organisation that has dairy front and centre for member dairy farmers, employees, consumers, and customers.

Keep ReadingShow less
Retail Shoplifting. Man Stealing In Supermarket
Photo: iStock

Home Office reaffirms commitment to abolish £200 shoplifting threshold

The UK government has pledged stronger measures to combat anti-social behaviour and shoplifting, which it acknowledges as serious crimes that disrupt communities and harm businesses.

Addressing a House of Lords debate on Monday, Home Office minister Lord Hanson detailed plans to abolish the controversial £200 shoplifting threshold and to introduce a new offence for assaults on retail workers.

Keep ReadingShow less
post office store
Photo: Post Office Ltd

Post Office launches wellbeing hub to support postmasters amid rising retail crime

In response to the mounting pressures faced by postmasters across the UK, the Post Office has unveiled a centralised wellbeing platform aimed at simplifying access to support resources.

Post Office said the surge in shoplifting and violent incidents, documented in the 2024 ACS Crime Report, has only intensified the demand for comprehensive support.

Keep ReadingShow less
Independent retailers face mixed outlook for 2025 – Bira
iStock

Independent retailers face mixed outlook for 2025 – Bira

Independent retailers have weathered one of their most challenging years in 2024, with multiple headwinds affecting the sector, according to the British Independent Retailers Association (Bira).

With pressures mounting throughout the year, independent retailers have faced an increasingly difficult trading environment marked by changing consumer behaviour and economic uncertainties.

Keep ReadingShow less