Asda owners rushing to complete £12bn merger
Asda owners, the billionaire Issa brothers, are “racing” to complete a proposed £12bn merger with petrol forecourt group EG Group by the end of April, The Times has reported.
The brothers plan to merge the two businesses as part of efforts to relieve some £7bn of debt across their petrol forecourt business.
The merger, overseen by the joint owners of both businesses the Issa brothers and TDR Capital, is expected to increase the UK supermarket’s debt significantly, which currently sits at £4.7bn.
If completed, the combined business would consist of 581 supermarkets, 700 petrol forecourts and over 100 convenience stores.
At least 100 Asda ‘On The Move’ convenience stores have already opened on EG forecourts across the UK.
EG Group, which saw its revenue increase by a quarter in 2022, recently announced the sale of 26 American sites for $48m (£40m), following another set of US disposals worth a further $1.5bn (£1.25bn).
The former chief executive of Marks & Spencer, Lord Rose, is favourite to lead the combined group. The merger is being advised by Rothschild, Barclays, and JP Morgan.
Another proposed Asda merger with a number of Co-Op forecourt sites is currently under scrutiny by the Competition and Markets Authority.