City Snapshot: Asda's £2.27 billion acquisition of EG Group UK and Ireland confirmed

Asda's acquisition of EG Group UK and Ireland for £2.27 billion marks a significant expansion for the company. The purchase will enable Asda, owned by the Issa brothers, investment funds managed by TDR Capital LLP, and Walmart, to add 350 additional petrol stations and 1,000 food-to-go shops to its operations. The acquisition is being carried out through Bellis Acquisition Company 3 Limited, an affiliate of Asda's parent company, and a wholly owned subsidiary of the Asda Group.

EG Group will retain approximately 30 Petrol Filling Station sites in the UK for wider group development, which will not be included in the acquisition.

The merger of Asda and EG UK&I will allow Asda to serve a combined customer base of around 21 million customers each week. Asda plans to invest more than £150 million within the next three years to fully integrate the combined business.

Stuart Rose, Chair of Asda, expressed excitement about the acquisition, stating, 'Asda's acquisition of EG UK and Ireland will create a consumer champion like the UK has never seen. Throughout my career in retail – one thing has always been true, that meeting the evolving needs of customers is the route to growth.

“This transaction is all about driving growth by bringing Asda’s heritage in value to even more communities and accelerating the growth of its convenience retail business.”

Mohsin Issa, co-owner of Asda, highlighted that “Asda is committed to saving customers precious time and money across their shopping baskets and on the forecourt. 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.

“I would like to sincerely thank all colleagues at both businesses for their ongoing efforts to serve our customers during tough economic times, and I look forward to welcoming our new colleagues from EG UK & I and expanding the Asda family further.”

Gary Lindsay, Managing Partner at TDR Capital LLP, said “The combination of Asda and EG UK&I creates a convenience and food retailing champion, with nearly £30 billion in annual revenues. The two businesses are highly complementary, bringing together Asda’s traditional focus on mid-to-large sized supermarkets and EG UK&I’s on convenience retail, foodservice and fuel.

“At TDR Capital we’re proud to play our part in bringing the businesses together. We invest for the long term and this transaction is the realisation of a shared vision which began with our investment in EG in 2016. We are committed to help Asda reclaim its number two position in UK grocery, strengthening its position as a much-loved British brand that delivers great value to millions of customers every week.”