Asda’s Zuber Issa to stand down as EG Group co-CEO

EG Group co-founder Zuber Issa is planning to step down as co-chief executive for petrol station giant EG Group.

Alongside Issa, EG Group chief operating officer Salim Hasan is also set to exit, however, these changes are understood to only be implemented if Zuber Issa completes a deal to buy a selection of sites from EG Group, according to Bloomberg News.

EG Group investors have been told that the business is in “active discussions with Zuber Issa regarding the sale” of UK assets.

The Issa brothers, who founded the convenience retail and gas station operator in 2001, went on to purchase Asda in 2021 in a deal worth £6.8bn.

Last year, EG sold and leased back 415 of its American convenience stores to Realty Income for $1.5 billion (£1.18bn) in an aim to lessen its debt, while later in the year it also it sold its UK and Ireland forecourts business to Asda for £2.27 billion.

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However, the brothers acquisition of Asda has since faced a series of challenges, including being questioned by MPs over the supermarket giant’s debt pile, a lack of transparency and workers’ rights.

Earlier this year, the supermarket’s accounting firm EY also quit as an auditor to Asda, as it also emerged that one of its senior partners began a romantic relationship with chief executive Mohsin Issa.

Zuber Issa had been looking to sell 22.5% stake in Asda in a bid to realign his focus on EG Group, and had approached retailers and private equity firms looking for more than £500 million for his shares, according to reports.

It comes as brother Mohsin Issa also revealed this month that he is planning to step back from day-to-day running of the grocery retailer, and is looking to hire a new CEO.

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