Asda completes £2bn EG acquisition

Asda has acquired petrol station group EG for around £2.3 billion.

Under the deal, Asda will take over EG’s UK and Ireland business comprising 350 petrol stations and more than 1,000 food-to-go locations.

It is anticipated that the merger between Issa brothers-owned Asda and EG will result in a joint business worth around £10 billion.

The supermarket said its acquisition of EG will allow it to better serve a combined base of around 21 million customers each week, as well as leverage its loyalty scheme and unite convenience, fuel, GM, grocery, foodservice and omni-channel retail under its ‘customer first’ slogan.

Asda added that it plans to invest more than £150 million over the next three years to fully integrate the combined business.

“Asda is committed to saving customers precious time and money across their shopping baskets and on the forecourt,” said Asda co-owner Mohsin Issa. “The combination of Asda and EG UK&I will be positive news for motorists, as we will be able to bring Asda’s highly competitive fuel offer to even more customers.”

Details of a possible merger first arose in January amid warnings from workers’ union GMB that the merger could threaten 100,000 jobs and imperil the UK's food supply and fuel prices.

In April, GMB 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, the CMA announced an investigation into Asda’s previously £600 million buyout of 132 Co-op retail sites which it completed late in 2022.

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