West Lancashire MP Ashley Dalton has written to business secretary Kemi Badenoch to intervene and investigate the ‘debt-laden’ merger between Asda and EG Group.
Dalton has warned that the merger between Asda and EG Group is ‘not in the best interests” of her county and will threaten jobs in West Lancashire and beyond.
According to Lancashire Live, Dalton’s letter says that Asda’s debts are already thought to be more than £4.7bn and a merger with EG Group could add more than £7bn to the total.
Asda recently acquired EG Group’s UK and Ireland operations for an enterprise value of £2.27bn, which EG will use to pay down its own debt pile.
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“The merger looks set to hugely increase the debt burden on Asda, which will threaten jobs in Skelmersdale, across West Lancashire and beyond as well as the future of the company,” Dalton said.
“As one of the largest private sector employers in the UK, the future sustainability of Asda is important to my constituents that work there. Their livelihoods rely on it. Not only that but many of my constituents do a weekly shop at the store.
She added: “This merger is not in the best interests of the country, my constituents or local business. I have written to the secretary of state, to ask that she ensures the CMA steps in and investigates.”
