EG Group steps back from £750 million purchase of Asda’s forecourt business
The Issa brothers’ EG Group has decided against moving ahead with a proposed £750 million acquisition of Asda’s petrol station forecourts business.
With Asda also being owned by the Issa brothers with backing from private equity firm TDR Capital, both Asda and EG Group said in separate statements that the lifting of competition law restrictions in June has led to new information coming to light.
EG group said: “This allowed Asda and EG group’s teams to start sharing commercial information relating to EG’s acquisition of the Asda forecourt business which had not been previously possible and has resulted in several changes to the financial evaluation of the proposed transaction. As a result, EG and Asda have decided they will no longer proceed with the transaction, and it was terminated as of 18 October 2021.”
EG Group added that key commercial initiatives between the two companies are well underway and include plans for the roll out of the Asda On the Move proposition across EG’s UK forecourts.
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