Asda owners to announce tie-up with their petrol station empire
The owners of Asda have announced that the supermarket will be linked to their petrol station empire for £10 billion
Zuber, left, and Mohsin Issa plan to combine EG Group, a company they founded, with Asda, which they bought in 2020
Asda’s owners are set to announce a £10bn partnership between the supermarket and their service station empire.
Sky News said the billionaire Issa brothers plan to combine EG Group, a company they founded, with Asda, which they bought in 2020 for £6.8 billion, creating a huge company with a turnover of around £30 billion and 170,000 employees.
The deal is expected to be announced today. It has been suggested for months that EG should refinance its £7bn mountain of debt by 2025.
By merging the two, the Issa brothers hope to secure a better refinancing deal.
But critics, including the GMB union, have warned it would dump some of that debt on Asda, which is reported to already owe around £4.7bn.
Last month, the union urged the Competition and Markets Authority to investigate every deal.