Asda owners the Issa brothers are reportedly in talks to merge their forecourt business, EG Group, with Canadian convenience store giant Couche-Tard.
According to The Wall Street Journal (WSJ), the two firms have been in talks in recent weeks, if agreed, the deal would value EG Group around $16 billion (£12.8 billion).
If successful, the merger of the two companies would have over $70 billion in annual sales and 21,000 fast-food restaurants, petrol stations and grocery stores.
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However, the WSJ said the conversations have “run hot and cold” in recent weeks as the pair have been discussing price.
The news comes as last year, Couche-Tard made an attempt to buy French supermarket giant Carrefour, but failed.
The news follows, reports of the Asda owners unveiling plans to overtake fellow Big 4 grocer Sainsbury’s as the second biggest supermarket in the UK.
Speaking to The Sunday Times in March, Mohsin Issa said: “We [Mohsin and Zuber Issa] are happy to commit whatever we need to get to that position. It’s not like we have got a clear five-year ‘get out’ plan; we and TDR have bought this business for the long term.”
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