Asda to Acquire EG Group’s UK and Ireland Business

This transaction will accelerate Asda’s strategic growth plans in convenience, omni-channel retail and foodservice.

May 31, 2023

LEEDS, United Kingdom—Asda Group announced the acquisition of EG Group’s U.K. and Ireland operations for approximately £2.27 billion. The purchase accelerates Asda’s “growth strategy in convenience, omni-channel retail and foodservice,” according to the company. The company plans to roll out Asda Express locations across the U.K. and Ireland. 

The transaction includes the EG U.K. and Ireland business consisting of approximately 350 petrol filling station sites and over 1,000 food-to-go locations. EG Group will retain approximately 30 fuel sites in the U.K. for wider group development. The deal will create a network with combined revenues of nearly £30 billion, serving around 21 million customers every week.

Both businesses are owned by the Issa brothers. Zuber and Mohsin Issa founded EG Group in 2001 and in 2020 became majority owners of Asda.

“Asda is committed to saving customers precious time and money across their shopping baskets and on the forecourt. The combination of Asda and EG UK&I will be positive news for motorists, as we will be able to bring Asda’s highly competitive fuel offer to even more customers,” said Mohsin Issa, co-owner of Asda.

After the transaction is complete, Asda plans to invest more than £150 million within the next three years to fully integrate the combined business. 

“The combination of Asda and EG UK&I is a natural next step for both businesses. The enlarged group will be better placed to benefit from highly attractive structural drivers behind the convenience and foodservice markets,” wrote Asda in a statement. 

“Asda’s acquisition of EG UK and Ireland will create a consumer champion like the UK has never seen,” said Stuart Rose, chair of Asda. “Throughout my career in retail, one thing has always been true, that meeting the evolving needs of customers is the route to growth.”

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