Asda co-owner Zuber Issa is to acquire EG Group’s UK arm in a deal set to be finalised by the end of next month.

The agreement, which will exclude the Cooplands bakery, some Starbucks stores and the group’s electric vehicle charging business Evpoint, comes in a bid to limit its debt pile.

EG Group said: “We are currently engaged in active discussions with Zuber Issa and his advisers regarding the sale of the retained UK business…with a view to announcing a binding agreement in the second quarter of 2024.

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It is understood that if the deal goes ahead, Zuber will sell his stake in Asda to TDR Capital. The private equity firm, which is already a co-owner of Asda alongside Mohsin Issa, would have majority control of the grocer when it snaps up his 22.5% stake.

The sale of EG’s UK arm would be the latest in a recent spate of disposals from the group, including the sale of most of its UK petrol forecourts to Asda and offloading more than 200 KFC stores in the UK and Ireland to Yum! Brands.

It comes as EG Group returned to profitability in 2023. It posted a $1.4bn (£1.1bn) pre-tax profit for the year, up from a loss of $258m (£203m) in 2022.

But, with the Asda deal removed from the figures, the firm made a pre-tax loss of £98.3m.

Revenue at the petrol station giant fell 5.4% from $30bn (£23.6bn) to $28.3bn (£22.3bn) over the year.