Supermarket Chain and Petrol Stations Set to Combine

  • Issa brothers near completion of a £12bn merger between Asda and EG Group
  • The deal would likely be structured as a takeover of EG UK by Asda
  • Merger aims to cut the forecourt group’s debt burden
  • Expected to be completed by end of April
  • New group to have 581 supermarkets, 700 petrol forecourts and over 100 convenience stores

The billionaire owners of Asda are reportedly nearing the completion of a merger between the supermarket chain and its UK petrol stations, operated by EG Group. The deal is expected to be worth £12bn and would likely involve a takeover of EG UK by Asda. This move aims to cut the forecourt group’s debt burden. The Issa brothers and TDR Capital, Asda’s private equity backer, are targeting completion by the end of April. The merger will create a conglomerate with 581 supermarkets, 700 petrol forecourts, and over 100 convenience stores. Reports of a potential merger first emerged in January, revealing that the brothers were considering combining Asda with EG Group ahead of its £7bn refinancing in 2025. Since acquiring Asda two years ago for £6.8bn, the Issa brothers have opened 70 ‘Asda On the Move’ convenience stores within EG petrol stations.

Factuality Level: 9
Factuality Justification: The article provides relevant information about the potential merger of Asda and EG Group, including details on the value of the deal, the structure of the merger, and its possible impact on Asda’s debt. It also mentions the background of the Issa brothers’ acquisition of Asda and their previous efforts to expand the convenience stores. The information is based on reports from The Sunday Times and seems to be accurate and objective.
Noise Level: 3
Noise Justification: The article provides relevant information about a potential merger between Asda and EG Group, but lacks in-depth analysis or exploration of long-term trends or consequences. It also does not offer actionable insights or new knowledge for the reader.
Financial Relevance: Yes
Financial Markets Impacted: The potential merger of Asda and EG Group could impact the supermarket and petrol station industries, as well as the debt burden of Asda.
Financial Rating Justification: This article discusses a significant business transaction involving two major companies in the retail and fuel sectors, which may have financial implications for both companies involved and potentially affect their balance sheets. Additionally, it mentions potential impacts on financial markets due to the merger’s effect on debt levels.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk