EG Group sells 63 US convenience stores to reduce debt

EG Group has announced it is selling off 63 of its US convenience stores in a bid to reduce its debt problem.

The Kentucky and Tennessee-based stores, which currently operate under the Minit Mart and Certified Oil brands, will be sold to Casey's General Stores.

EG Group, which was bought by Asda in May, recently revealed that it lost $258 million last year.

Asda acquired the company for around £2.3 billion, taking over its 350 petrol stations and over 1,000 food-to-go locations across the UK and Ireland.

Details of a possible merger between the two companies 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".

“EG Group is pleased to have found a new home for some of our Certified Oil and Minit Mart portfolio," said Zuber Issa, co-founder and co-chief executive, EG Group, commenting on its sale to Casey's General Stores. "This divestment will enable both parties to execute their strategic plans, respectively.

"For EG Group, this divestment also represents another important step in executing our deleveraging strategy.”

EG Group said that Casey's is expected to keep impacted employees working at the stores.

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