Asda vows to be ‘consumer champion’ after EG Group deal
Asda Group has confirmed the acquisition of EG Group’s UK and Ireland operations for an enterprise value of £2.27bn.
The move will accelerate Asda’s strategic plans to create a value-led convenience offer by rolling out Asda Express stores across the EG UK and Ireland estate and builds on the acquisition of Co-op sites in 2022.
The deal includes 350 petrol stations and over 1000 food to go sites, with Asda stating they are “committed to the lowest supermarket fuel prices”.
The transaction brings together the two businesses which are already owned by the Issa brothers, with a spokesperson confirming Mohsin Issa will continue to lead the business, while Asda commences a search to appoint a new group CEO.
Following the completion of the transaction, which is expected to close in Q4 2023, Asda plans to invest more than £150m within the next three years to fully integrate the combined business.
Seen as a “natural step” for Asda and EG UK&Ireland, the group will be “better placed to benefit from highly attractive structural drivers” behind the convenience and foodservice markets.
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,” he added.
‘Asda’s acquisition of EG UK and Ireland will create a consumer champion like the UK has never seen’
Mohsin Issa, co-owner of Asda, 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.
“I would like to sincerely thank all colleagues at both businesses for their ongoing efforts to serve our customers during tough economic times, and I look forward to welcoming our new colleagues from EG UK&I and expanding the Asda family further.”