Asda has agreed to buy petrol station giant EG Group for 2.27 bn, a move which will see the UK's third-largest supermarket expand its expansion into the convenience food sector.
The deal will bring together companies that are already owned by the billionaire Issa brothers.
The transaction is all about driving growth by bringing Asda's heritage in value to even more communities and accelerating the growth of its convenience retail business. Asda already has 166 On the Move convenience stores, which have been rolled out on EG sites since the Issa brothers bought the supermarket in 2021.
It is inevitable that the Issa brothers will want to consolidate assets they already own, Hyman said. The owners and operators are economically aggressive, and the only reason they will be doing this is to cut costs. The combination of Asda and EG would be positive news for motorists, as we will be able to bring Asda's highly competitive fuel offer to even more customers. Despite claims by supermarkets that they are working to keep food prices as low as possible, the competition watchdog is looking at whether a failure in competition means customers are overpaying, despite claims that supermarkets are working to keep food prices as low as possible. The tie-up between Asda and EG has been expected for some time, and before the deal being announced the GMB union called for it to receive proper scrutiny by the CMA.