Different roads open up for the Issa brothers

By Ged Henderson

28 Jan 2025

Zuber and Mohsin Issa

They may have gone their separate business ways but as 2024 came to a close there were no signs that the Issa brothers were losing their appetite for dealmaking.

Zuber Issa, the co-founder of EG Group and former co-owner of Asda, was making headlines amid reports of his efforts to strike his first acquisition since the breakup of the business empire built with his brother Mohsin.

Meanwhile, Mohsin was in the news over the launch of a Jersey based private investment fund looking to bring new opportunities for innovation-driven businesses.

And that was followed by further reports that both brothers could be in line for a big payout, with speculation that EG Group is looking at a £13bn listing on the US stock exchange, possibly as early as this year.

It meant 2024 ended with the Blackburn brothers firmly in the media spotlight, as they have been ever since it was revealed in the summer that they planned to go in different directions after 20 years of joint success.

June saw Zuber acquire the forecourt division of Blackburn headquartered EG Group, the company he co-founded with Mohsin in 2021, in a £228m deal – It has now been renamed EG On the Move (EGOTM).

He stepped down as EG Group’s co-chief executive, leaving Mohsin to lead the business on his own, while retaining his existing shareholding and board membership as a non-exec director.

Mohsin is now sole chief executive of EG Group, today an international operator of convenience retail, foodservice and fuel stations.

Zuber also left his role on the board of Asda after completing the sale of his shares in the supermarket giant to private equity group TDR Capital in November.

The brothers had acquired Asda from US group Walmart in 2020, in a £6.8bn deal, with the backing of TDR. It now has 67.5 per cent of the
business, with Mohsin holding 22.5 per cent.

Walmart owns 10 per cent.

The business parting of the ways was never going to be the end of the billionaire brothers’ story and so it has proved.

In November it was revealed that investment bank Rabobank had become EGOTM’s “strategic partner”, providing new working capital facilities to support its “exciting growth plans”.

According to unconfirmed reports, those plans included pursuing a deal for Petrogas Group, the UK arm of Irish forecourt giant Applegreen.

Sealing a deal with Petrogas would significantly bolster EGOTM’s portfolio, adding more than 100 petrol stations across the country.

Rabobank has been serving and supporting the UK’s food and agribusiness for 40 years. EG Group has long been a long-standing client. 

In a statement announcing the strategic partnership, Rachael Hewitt, EGOTM’s chief financial officer, said: “We are delighted to secure
these new facilities to support our future growth.”

Mohsin has also been busy, according to the financial pages. He is reported to have launched Boulder Investico, a private
investment fund looking to support fast-expanding UK start-ups.

Investments are already said to have been made in second hand clothing platform GoThrift and protein powder company Applied Nutrition.

Blackburn based GoThrift runs an online fashion store where shoppers can buy vintage clothing. Global sports nutrition, health and wellness brand Applied Nutrition has its headquarters in Liverpool and recently floated on the London Stock Exchange.

The establishment of Boulder Investico has been hailed as a “significant boost for UK start-ups”.

Meanwhile, EG Group ended the calendar year revealing further progress in its work to deleverage its finances.

And as 2024 came to a close, reports emerged of a potential £13bn US
listing of the forecourt giant.

Sources suggested that the business and TDR Capital, its private equity backer, were looking at a possible listing as early as this year with
the American market favoured because of the company’s extensive operations there.

The £13bn figure reported is 13 times the group’s annual profits, which last year were £1.1bn.

In early December the group announced further progress with its strategy – refinancing $3.5bn of loans as it looked to unlock investment cash.

In a statement the company said: “These transactions follow strong recent progress with the group’s deleveraging plan, with the group completing a number of non-core asset disposals in the final quarter of 2024 and generating over $400m equivalent of proceeds to repay debt.

“This, coupled with group’s strong performance and improved free cash flow during the year, resulted in Moody’s upgrading the outlook of the business from negative to stable.”

The business grew underlying EBITDA by 10 per cent in the nine months to September 30 2024, driven by earnings growth across all
key business streams, and a “notably strong performance” in the USA.

Mohsin said: “I am pleased that we have delivered further progress with our successful deleveraging and refinancing strategy, which is
central to the execution of our strategic objectives.

“The successful repricing will materially reduce our financing costs, enabling us to invest further in the growth of the business.

“This transaction is a vote of confidence in EG Group’s strategy and performance from investors. We thank them for their continued support and look forward to pursuing the opportunities ahead of us.”

And what of Asda, where Mohsin still remains a minority owner and non-executive director?

Times are tough for the group, with a report from research group Kantar showing sales in the 12 weeks to December 1 fell to £4.3bn – down 5.6 per cent on the same period a year ago.

The gloomy figures came just weeks after its former chief executive Allan Leighton returned to the business to take over from Stuart Rose
as executive chairman.

The 71-year-old told a national newspaper it could take three to five years to revive the supermarket chain’s fortunes.

He said that his first priority was to “restore Asda’s DNA”. The former Co-op and Royal Mail chair has committed three to five years of his time to the task as “it is going to take us that long to get it right”.

Enjoyed this? Read more from Ged Henderson

Latest news

1

Major shareholder makes Inspired takeover bid inspired-500x500.png

Major shareholder makes Inspired takeover bid

23 Apr 2025

2

Nominate your favourite family-run business in Lancashire. Thompsons meeting (1).png.png

Nominate your favourite family-run business in Lancashire.

22 Apr 2025

3

Business academies to continue for an additional year Cllr Mark Smith (r) with Top Gun Tools & Fixings team presenting Blackpool Net Zero Academy certificate

Business academies to continue for an additional year

22 Apr 2025

4

Napthens advises A Lamb Associates (ALA) and subsidiary Morham & Brotchie Partnership on their acquisition by Hawkins & Associates Richard Robinson Feat IMG

Napthens advises A Lamb Associates (ALA) and subsidiary Morham & Brotchie Partnership on their acquisition by Hawkins & Associates

22 Apr 2025

5

Six promotions at Farleys Solicitors Promotions at Farleys Solicitors

Six promotions at Farleys Solicitors

22 Apr 2025

Pc Prestonmacan Gif980x120 March
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200px 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

The Business Network Central & East Lancashire
LBV Hub Networking
24 Apr 2025 - 24 Apr 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Preston Freelancer Meet-Up: April
1.png.png
LBV Hub Networking
25 Apr 2025 - 25 Apr 2025

Preston Freelancer Meet-Up: April

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

People Power: Exclusive Event Series
Stay ahead in 2025.jpg.jpg
LBV Hub Seminars
29 Apr 2025 - 29 Apr 2025

People Power: Exclusive Event Series

People's History Museum, Manchester, M3 3ER

17:00 - 21:00

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv121 Online Graphic
Subscribe now

Weekly news bulletin