EG Group will no longer be acquiring Asda’s 320 forecourts, both companies have confirmed today.
The company had agreed a deal to acquire Asda’s petrol filling stations, car washes and ancillary land for £750m at the start of the year, but plans have now been dropped.
The deal was part of a complex transaction following the acquisition of Asda by EG Group’s co-founders and co-CEOs Mohsin and Zuber and their private equity backers TDR Capital for £6.8bn.
The acquisition of the forecourt business was subject to the same CMA regulatory clearance being received by the group’s shareholders for their acquisition of Asda. EG Group recently sold 27 sites to Park Garage Group as part of the CMA requirements.
At the time it was said the forecourts would remain an integral part of the broader retail locations where they were situated, would continue to be Asda branded and would remain a price leader in the fuel market. The Issa brothers were keen that it would enhance their position as a major independent forecourt operator and provide a platform for future growth of the combined network.
However, it is reported that once the two businesses began sharing information they could not agree on a deal.
[Source: Forecourt Trader online]