Asda acquires 350 petrol stations, 1,000 food-to-go sites in £2.3bn EG Group deal
Supermarket chain, Asda, has confirmed the acquisition of EG Group’s operations in the UK and Ireland, in a deal worth £2.27 billion.
The move, led by Asda’s owners, the Issa brothers, and TDR Capital, aims to establish a “new value-led consumer champion” in the market.
Mohsin Issa, co-owner of the supermarket and co-founder of EG Group, stated that the deal will bring “Asda’s highly competitive fuel” to a wider customer base.
EG Group’s British and Irish business includes a network of 350 petrol stations and over 1,000 food-to-go locations.
However, EG Group will retain approximately 30 petrol stations in the UK for wider group development, which will not be part of the transaction.
The acquisition is set to accelerate Asda’s strategic plans for a value-led convenience offer, with the rollout of Asda Express across EG’s UK and Ireland estate.
Asda intends to invest over £150 million in the next three years to fully integrate the combined business. Shareholders are contributing approximately £450 million in additional equity to support the transaction.
Stuart Rose, Chair of Asda, commented: “Asda’s acquisition of EG UK and Ireland will create a consumer champion like the UK has never seen. Throughout my career in retail, one thing has always been true – that meeting the evolving needs of customers is the route to growth.”
“This transaction is all about driving growth by bringing Asda’s heritage in value to even more communities and accelerating the growth of its convenience retail business.”
Mohsin Issa, co-owner of Asda, added: “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.”
“I would like to sincerely thank all colleagues at both businesses for their ongoing efforts to serve our customers during tough economic times, and I look forward to welcoming our new colleagues from EG UK&I and expanding the Asda family further.”
Under the new structure, Asda plans to bring all acquired EG UK&I sites under its own fascia, integrating them into its existing network.
The successful conversion of 166 EG sites to ‘Asda on the Move’ has provided Asda with confidence in its conversion strategy and the anticipated synergies resulting from the combination.
This move aligns with Asda’s aim to offer enhanced convenience to its customers through a wider reach of locations. Spotted something? Got a story? Send a Facebook Message | A direct message on Twitter | Email: News@Deeside.com