Asda and EG Group have decided they will no longer proceed with the £750m transaction of Asda Forecourt Business due to several changes to the financial evaluation of the proposed deal.
Asda remains confident that it will continue to derive synergy benefits from its strategic alliance with EG through key initiatives already underway.
These include the development of plans to introduce foodservice at Asda locations, and the expansion of Asda’s convenience offering, where both companies have confirmed their intention to roll-out the Asda On the Move proposition across EG’s UK forecourts.
Asda recently announced plans to establish 28 new Asda On the Move convenience stores at EG forecourts this year, with a target of 200 by the end of next year and the ambition to roll out more sites in 2023.
Asda will retain the petrol forecourts business and the associated revenue and EBITDA. The forecourts have been an important footfall driver to the business, supported by its position as a price leader in the supermarket fuel sector.