Asda set to announce £10bn merger with EG Group
The owners of the Asda supermarket chain and EG petrol forecourt group are finalising plans for a £10 billion merger of their operations in the UK.
The move will enable Asda to accelerate its drive into the convenience sector.
According to Sky News, the billionaire Issa brothers and TDG Capital are set to announce today that Asda will be buying its sister company. The move will create a group of 170,00 employees with annual revenues of almost £30 billion.
Sky News said the proceeds from the deal will also help EG Group to reduce its debt burden.
The new group will operate nearly 600 supermarkets, 700 petrol stations and 100 convenience stores.
The plans have been criticised by GMB, the union for Asda workers.
Nadine Houghton, GMB National Officer, said: “GMB believes this merger requires proper scrutiny from the CMA. We are concerned rising interest rates will leave the debt of the UK’s third largest retailer unsustainable.
“More than 7,000 ASDA colleagues are already facing hire and rehire – this slashing of terms and conditions is just the tip of the iceberg. GMB’s priority is to protect and improve our members jobs and conditions and we believe this merger makes that harder.”
