Issa brothers weigh up $35bn Asda-EG Group merger

Mohsin and Zuber Issa are considering a multi-billion merger between Asda and EG Group, their international petrol station empire.

The combined business, which one source valued at $35 billion, would help EG against larger rivals like Canada’s Alimentation Couche-Tard.

According to Bloomberg, the firms have repeatedly butted heads when bidding for certain assets.

Asda, bought by the brothers and private equity firm TDR Capital last year, has worked more closely with EG in recent months.

READ MORE: Ex-M&S boss Stuart Rose appointed Asda chairman

It has been installing “Asda on the Move” stores across EG’s forecourts, while Lord Rose – already chairman of EG – was appointed Asda’s chairman last week.

However, the Issas could decide to take the business in other directions.

As first reported months ago, they could sell their Australian petrol stations for an estimated $2 billion or publicly list the company.

EG spent A$1.73 billion ($1.2 billion) to buy 540 Australian fuel convenience sites from Woolworths in 2019.

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