EG to acquire Asda's forecourts for £750m

By Tim Aldred

03 Feb 2021

Blackburn-headquartered EG Group is set to acquire supermarket giant Asda's forecourts operation, including land, filling stations and car washes, in a £750m deal.

The acquisition will take place once the £6.8bn sale of the Asda Group to EG Group's owners Moshin and Zuber Issa and private equity firm TDR Capital is completed.

The sale of Asda by US giant Walmart is on track to be completed later this month, according to a statement released today. It also revealed details of the financing of the deal and reinforced the new owners' commitment to invest more than £1bn in the UK supermarket group over the next three years.

Asda's forecourts will then join the EG's international portfolio. The global convenience and forecourts retailer employs more than 44,000 workers at more than 6,000 sites across Europe, USA and Australia. The sites will keep their Asda branding and continue to offer "competitively-priced fuel".

The Issa brothers and TDR Capital have also announced that when the Asda Group acquisition completes, they plan to sell "certain distribution assets" to real estate investors but insist there will be no disruption to day-to-day retail activities or loss of jobs. Asda will continue to operate the assets.

Mohsin and Zuber Issa said: "Looking ahead, and subject to the required regulatory approvals, we look forward to working with our Asda colleagues to build an even stronger, more differentiated retailer - including through the investment of more than £1bn in the next three years to further strengthen the business and its supply chain.

"We are also excited about the proposed integration of the Asda forecourts into EG’s established UK operations, which we believe would underpin the future growth of the combined network."

Both the main Asda deal and the acquisition of the forecourts are subject to CMA regulatory clearance. The sale to EG Group is expected to be finalised in the second quarter of 2021.

As part of the financing of their acquisition of Asda, the Issa brothers, TDR Capital and Walmart intend to launch the syndication of €840m of institutional term loan B facilities and, later, the offering of £2,250m of senior secured notes and £500m of senior notes.

After regulatory approval, the Asda board will comprise of Mohsin and Zuber Issa, Manjit Dale and Gary Lindsay of TDR Capital and Chris Nicholas, EVP and Chief Financial Officer for Walmart International, in addition to Asda CEO Roger Burnley. In due course, independent directors will be appointed.

EG Group will announce its Q4 and full year 2020 trading results on Thursday February 25.

  • For further Lancashire business news, advice and analysis subscribe to Lancashire Business View or join the LBV Hub from just £2.50 per month. Click here to subscribe now.

Enjoyed this? Read more from Tim Aldred

Latest news

1

Specialist legal practice triples in three years Director Mary Lowe with some of her team outside Mary E Lowe in Park Street Lytham

Specialist legal practice triples in three years

10 Jan 2025

2

CoolKit partners with HEAT centre to advance skills in sustainable automotive technology The HEAT Centre

CoolKit partners with HEAT centre to advance skills in sustainable automotive technology

10 Jan 2025

3

Kelmore welcomes new area sales manager to support rapid growth Tom Cheevers and Steve Kean

Kelmore welcomes new area sales manager to support rapid growth

10 Jan 2025

4

Boost scale up support helps LCM Environment services with rebranding LCM team with county councillor Carole Haythornthwaite

Boost scale up support helps LCM Environment services with rebranding

09 Jan 2025

5

IN4 Group delivers £44m in social impact and supports more than 3,000 people in tech careers IN4 Groups Skills City graduates

IN4 Group delivers £44m in social impact and supports more than 3,000 people in tech careers

09 Jan 2025

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
The Lancashire Festival of Business
FOB 315
Exhibitions
30 Jan 2025

The Lancashire Festival of Business

Impact Conferencing, Burnley, BB12 6QP

09:30 - 16:00

Skills Bootcamp in Procurement - Cohort 3
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Awards
14 Jan 2025 - 18 Mar 2025

Skills Bootcamp in Procurement - Cohort 3

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

Preston Tech Connection - January Meet-Up
Nov Preston Tech Connection event banner-4.png.png
LBV Hub Networking
15 Jan 2025 - 15 Jan 2025

Preston Tech Connection - January Meet-Up

Society1 Coworking Space, Preston, PR1 3LT

18:00 - 19:30

The Business Network Central & East Lancashire
LBV Hub Networking
16 Jan 2025 - 16 Jan 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

R.I.S.E. and Shine
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
16 Jan 2025 - 16 Jan 2025

R.I.S.E. and Shine

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

08:45 - 11:00

LBV120 Magazine Launch Event
DSC9389
Networking
17 Jan 2025

LBV120 Magazine Launch Event

Lancastrian Suite, Town Hall, Chorley, PR7 1DP

08:30 - 10:30

Sub36 Networking - Behind the beans
Sub36 Social1200Atkinsons New
Networking
14 Feb 2025

Sub36 Networking - Behind the beans

Atkinsons Speciality Coffee, Lancaster, LA1 1 EX

09:00 - 11:30

Red Rose Awards 2025
Red Rose Awards 2025
Awards
13 Mar 2025

Red Rose Awards 2025

Winter Gardens Blackpool

18:00 - 11:59

Lancashire Business Day 2025
241122lbvlancashiredaylhp0647web
Networking
27 Nov 2025

Lancashire Business Day 2025

12:00 - 17:00

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 LBV118 Online Graphic
Subscribe now

Weekly news bulletin