Food and Beverage Business
Finance

EG Group sells additional convenience stores to Asda

EG Group sells additional convenience stores to Asda Asda, Convenience stores, EG Group Food and Beverage Business

Asda Group has recently announced its acquisition of EG Group’s UK and Ireland business for an estimated value of £2.27 billion, marking another successful step in Asda’s expansion plan. EG Group’s portfolio boasts around 350 petrol filling station sites as well as over 1,000 food-to-go locations, which Asda is planning to fully integrate through its parent company, Bellis Acquisition Company 3 Ltd. Investment funds managed by TDR Capital LLP, Walmart, and the Issa brothers jointly own Asda. However, as part of the transaction, EG Group will keep around 30 PFS sites for its further development, which will not be part of the transaction.

Asda has disclosed its plans to invest more than £150 million in the next three years to ensure smooth integration of the combined business. Furthermore, the shareholders of Asda will be providing additional capital of around £450 million to finance the transaction. The co-owner of Asda, Mohsin Issa, expressed his enthusiasm about bringing Asda’s highly competitive fuel offer to an even broader customer base. Meanwhile, Stuart Rose, Chair of Asda, celebrates this transaction as a milestone towards meeting the evolving needs of customers, stating, “Asda’s acquisition of EG UK and Ireland will create a consumer champion like the UK has never seen.”

The merger of Asda and EG UK&I will result in a convenience and food retailing powerhouse. The two businesses are highly complementary, with Asda traditionally focusing on mid-to-large sized supermarkets, and EG UK&I prioritizing convenience retail, foodservice, and fuel. This alliance will create nearly £30 billion in annual revenue, expanding Asda’s family and bringing Asda’s heritage in value to a more comprehensive range of communities, driving its growth and accelerating its convenience retail business.

In conclusion, Asda’s acquisition of EG Group’s UK and Ireland business is set to revolutionize the retail industry, offering customers more choices and greater convenience while bringing Asda a step closer to achieving its expansion objectives. We welcome our new colleagues from EG UK&I and look forward to serving our mutual customers with even greater diligence.

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