Asda’s £750m deal to sell forecourts business to EG Group terminated

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The Issa brothers have pulled EG Group’s planned acquisition of Asda’s petrol forecourts business.

EG Group said that the proposed deal, which was first announced in February, has been terminated as a result of commercial information that was previously not able to be disclosed between the two companies due to UK competition law being made available for the first time.

EG Group said that these restrictions, which were lifted on June 16, allowed the two businesses “to start sharing commercial information relating to EG’s acquisition of the Asda forecourt business, which had not been previously possible and has resulted in several changes to the financial evaluation of the proposed transaction”.

As a result, EG Group’s planned acquisition of Asda’s forecourt business for £750m has been terminated. EG Group will instead redeem the £675m in aggregate principal amount of 6.25% of senior secured notes due issued in March, as well as unwind the related escrow arrangements.

Asda will retain its petrol forecourts business and its associated sales and profits.

EG Group said: “Key commercial initiatives between EG and Asda are already well under way, 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.

“These plans remain unchanged and the company continues to anticipate synergies as a result of its growing relationship with Asda.”