It isn't going to be Asda as EG Group pulls out of £750m forecourts deal

EG Group, owned by the billionaire Issa brothers, has pulled out of its planned £750m purchase of Asda's forecourt business, the two companies said on Monday.

Asda and EG are both owned by Zuber and Mohsin Issa, backed by private equity outfit TDR Capital. They cited changes in the financial of the proposed deal after new information came to light when competition law restrictions were lifted in June.

"As a result, EG and Asda have decided they will no longer proceed with the transaction, and it was terminated as of October 18, 2021,” the two firms said in a statement.

EG agreed a deal to sell almost 30 of its own petrol stations sites to appease concerns raised by the Competition and Markets Authority in its probe of the brothers’ £6.8bn purchase of the supermarket chain towards the end of 2020.

"Key commercial initiatives between EG and Asda are already well underway including the development of plans to introduce Foodservice at Asda locations and the expansion of Asda’s convenience offering, where both companies have confirmed their intention to roll-out the Asda On the Move proposition across EG’s UK forecourts," the companies added.

"These plans remain unchanged, and the company continues to anticipate synergies as a result of its growing relationship with Asda."

EG Group said it would now start the process to redeem the £675m in aggregate principal amount of 6.25% Senior Secured Notes due 2026 issued on March 12, 2021 and unwind the related escrow arrangement.