Billionaire Issa brothers who bought Asda from Walmart in February 2021 f0r £6.8 billion, now buys EG, petrol forecourt business in a £2.3 billion deal.

Zuber Issa  CBE, co-founder and co-CEO of EG Group said “ This transaction with Asda represents an important strategic step for EG Group

EG group which also owns the Leon fast-food chain said around 350 petrol stations and more than 1, 000 food-to-go sites in the UK and Ireland would be sold off to Asda as part of the deal.

The firm said the proceeds from the deal would used to repay its debts as it wrestles with soaring interest rates on its billions of pounds of loan.

However, the group will continue to operate in the US and several European countries while retaining  around 30 UK sites and Cooplands bakery brand.

EG Group said its shareholders are providing around £450million of additional equity to fund the merger with Asda and pledged to invest more than £150million within the next three years to fully integrate the combined business.