EG Group has completed the sale of the majority of its fuel, foodservice, grocery and merchandise business in the UK and Ireland to Asda for £2.07 billion.

As part of the acquisition, the retailer has taken over more than 350 petrol stations and 1,000 food-to-go locations.

The move forms part of Asda's strategy to become the UK's second largest supermarket, a position currently held by rival Sainsbury's.

The company has already begun work on a new convenience store network, with the company now rolling out its Asda Express format across 356 former EG Group sites, including "modern" convenience stores at petrol filling stations.

Asda said that the buyout also accelerates its move into the £62 billion foodservice market, with the transfer of 462 Greggs, Burger King and Subway outlets as franchise agreements.

“This is a great day for Asda and for millions of UK consumers," said Mohsin Issa, co-owner of Asda. "Asda is a much-loved brand that is instantly recognised for great value.

"I could not be more proud or excited that the iconic Asda sign is now coming to hundreds more communities.”

The supermarket expects its takeover of the UK business to deliver combined revenues of nearly £28 billion, while serving around 21 million customers each week.

Asda's buyout of EG Group builds on its purchase of 119 convenience stores with attached petrol filling stations from the Co-op Group.

The company began converting these locations to the Asda Express fascia earlier this month.

So far, Asda has launched three stand-alone Asda Express stores since October 2022.

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