Asda's planned merger with petrol forecourt business EG Group could threaten the UK's food supply, fuel prices, and 100,00 jobs, GMB has warned.

The trade union has urged business and trade secretary Kemi Badenoch to encourage the Competition and Markets Authority (CMA) to investigate the deal, claiming that the merger could add over £7 billion to the supermarket's existing debt, which is already thought to be worth "more than £4.7 billion".

Earlier this year talks were held prior to a "crunch refinancing" at EG Group, which faces £7 billion of debt falling due in two years.

The proposed merger of the two companies, which are both owned by the Issa brothers, was first reported in January.

In a letter to the trade secretary, GMB said that any additional EG Group debt is due to be refinanced in 2025 when interest rates are likely to be significantly higher. It said that this could place the supermarket in a "perilous financial position".

“The potential Asda and EG Group merger is likely to saddle the company with a massive, unsustainable debt burden," said Nadine Houghton, GMB national officer. “Allowing it to go ahead would be deeply irresponsible."

Houghton described the sustainability of Asda as a matter of national and public interest given that it is one of the largest private sector employers in the UK.

She added that the merger would place the future of the UK's food supply at risk by "loading even greater debt" on to one of the UK's Big four Supermarkets, while also having a "chilling effect" on competition for fuel prices by creating a "super retailer" of more than 700 petrol stations.

Asda declined to comment on claims made by the GMB.

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