EG Group, Asda Call Off $1 Billion Forecourts Deal

The companies will still proceed with their Asda On the Move collaboration. 

October 19, 2021

ASDA Gas Station Forecourt

ALEXANDRIA, Va.—EG Group’s $1 billion deal to buy the forecourt operations of U.K. grocer Asda is off, even as the companies continue to collaborate on Asda On the Move convenience stores.

The U.K.-based companies announced yesterday their decision to halt the acquisition. EG Group was founded in 2001 by Mohsin and Zuber Issa, who are co-CEOs, and is backed by TDR Capital. In October 2020, Walmart agreed to sell its stake in Asda to the Issa brothers in a deal that valued EG Group at $8.8 billion. Separately, EG Group in February 2021 agreed to buy Asda’s gas stations, car washes and related real estate.

Now, Asda will keep its petrol forecourts business, describing it as “an important footfall driver to the business, supported by its position as a price leader in the supermarket fuel sector.”

Asda said it “remains confident that it will continue to derive synergy benefits from its strategic alliance with EG through key initiatives already underway, including the development of plans to introduce foodservice at Asda locations and the expansion of Asda’s convenience offering, where both companies have confirmed their intention to roll-out the Asda On the Move proposition across EG’s UK forecourts.”

EG Group said it will continue to work with Asda to introduce Asda On The Move c-stores on EG Group forecourts. “These plans remain unchanged, and the company continues to anticipate synergies as a result of its growing relationship with Asda,” EG Group said in a press statement.

NACS Magazine featured EG Group and its European expansion plans in “On the Move” in the January 2021 issue.