Issa brothers in talks to merge EG Group with Canadian convenience store giant

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.

READ MORE: Billionaire Issa brother set to launch independent store

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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