Asda and EG owners hungry for Subway takeover

28th March 2023 | Jack Oliver

The owners of Asda and petrol forecourt group EG Group are reportedly interested in taking charge of fast food chain Subway in a deal worth £8bn.

The billionaire Issa brothers already host some Subway restaurants in a number of their petrol stations globally, with 340 forecourts based in the UK.

The brothers, whose net worth is reportedly £4.73bn, are not the only potential suitors circling the sandwich chain. Subway previously told shareholders that it was exploring the idea of a sale, and in March it was reported that Wall Street giant Goldman Sachs is also interested in purchasing the chain.

Subway, which trades from over 2,000 sites in the UK, was founded in Connecticut in 1965 and has remained family-owned ever since.

This comes after it was reported that EG Group saw an increase in revenue of 25% in 2022, despite operating costs increasing amid a tough trading environment.

The petrol forecourt group, which operates Euro Garages, Cooplands, Leon, and Cumberland Farms, saw its network expand to some 6,612 sites by the end of 2022.

An acquisition of Subway would be one of many recent deals for the Issa brothers, as the two look to rush a merger between their EG Group and Asda to alleviate debts.

The brothers are also waiting for an investigation by the Competition and Markets Authority into their potential Asda/Co-Op forecourts merger to conclude.


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