Asda acquires EG Group’s UK and Ireland business
Asda is acquiring EG Group’s UK and Ireland business in a £2.27 billion deal.
In a statement, the supermarket said it is purchasing the UK and Ireland operations of EG Group, which includes 350 petrol filling station sites and over 1,000 food-to-go locations, to help accelerate expansion into the convenience sector.
Like Asda, EG Group is owned by the Issa brothers and TDR Capital. The supermarket is acquiring the business through an affiliate of its parent company, Bellis Acquisition Company 3 Limited, a wholly-owned subsidiary of the Asda Group. However, EG Group will retain approximately 30 UK petrol forecourt sites for wider group development,
Following completion of the transaction, Asda plans to invest more than £150 million within the next three years to fully integrate the combined business.
Stuart Rose, chair of Asda, said: “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.”
Asda said the acquisition will open up significant opportunities for its business in the growing convenience and foodservice markets. Some 166 EG sites have already been successfully converted to ‘Asda on the Move’ stores and Asda is now planning to bring all acquired EG UK and Ireland sites under the Asda fascia.
This is in addition to Asda’s acquisition of 119 convenience sites with attached fuel forecourts from the Co-Op Group and the successful launch of three standalone Asda Express convenience sites since October 2022.
Asda co-owner Mohsin Issa will continue to lead the business through its ongoing transformation programme and the integration of EG’s UK and Ireland business. In this, he will be supported by Asda’s existing leadership team, which includes the recently appointed chief financial officer Michael Gleeson.
The company has commenced a global search process to identify a new chief executive of Asda which is expected to take several months.
Mohsin Issa said: “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.”
