Asda and EG Group owners on verge of merger announcement

The owners of Asda and petrol forecourts giant EG Group are set to announce the completion of a £10bn merger of their UK operations.

The billionaire Issa brothers and TDR Capital are expected to announce the merger on Friday (26th), Sky News has reported.

If completed, the deal would see the combined group operate nearly 600 supermarkets, 700 petrol forecourts, and 100 convenience stores.

The merger is expected to accelerate Asda’s drive into the convenience market, as it falls behind industry competitors Sainsbury’s and Tesco.

Barclays and HSBC are believed to be financing the deal, with the former providing financial advice along with Rothschild.

Discussions regarding the merger of Asda and EG Group have been in the works for over six months.

The deal has been closely monitored by watchdogs such as the Competition and Markets Authority, which also stepped in after Asda acquired 132 Co-Op sites in October.