Asda co-owner Mohsin Issa has stepped down as chief executive of petrol station chain EG Group ahead of its initial public offering.

In a statement, the business confirmed Issa has been replaced by its current chief financial officer Russell Colaco. Issa, who co-founded the forecourt chain with his brother Zuber, is set to remain on the board as a non-executive director.

Issa’s exit comes as the forecourt giant explores a listing on the New York Stock Exchange (NYSE). The listing would value EG Group at an estimated  $13bn (£10.7bn), after it offloaded the majority of its UK business to Asda in 2023.

“Now is the natural time for me to step back from my day-to-day duties at EG as it embarks on the next stage of its journey,” said Issa in a statement.

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“Following the sale of the majority of the UK business to Asda, the group is a very different company now.

“The US market is now the largest region by sales… and where EG needs to have its lead executives based.”

Last year, Zuber Issa stepped back from both his roles at EG Group and Asda, while in September, Mohsin also stepped down from his role of running day to day operations at the supermarket chain.

It came amid Asda’s then chairman Lord Stuart Rose saying he was “embarrassed” by the struggling supermarket’s decline, and advised Mohsin Issa to step back from the business.