Asda agreed to buy EG Group’s UK and Ireland gas-station business in a move that aims to create a convenience retailing empire in one of the world’s most competitive food markets.
The billionaire Issa brothers, Mohsin and Zuber, announced the merger Tuesday for an enterprise value of about $2.8 billion, combining two businesses that are they both own with buyout firm TDR Capital. The deal will help EG refinance debt coming due in 2025.
The combination creates a convenience company with annual revenue of about £30 billion, serving more than 20 million customers every week. It also helps Asda in its mission to unseat J Sainsbury Plc as the second-largest UK grocer and forms one of the biggest privately owned businesses in the country.
Bloomberg News first revealed in late 2021 that the brothers were exploring options for EG Group and considering a potential merger of its operations with Asda.
