Canadian convenience store petrol station giant Couche Tard is seen as the favourite should Asda’s new owners look to sell off their forecourt empire.
Both Couche Tard and new Asda owners Moshin and Zuber Issa are understood to have held talks about the possible sale of the brother’s EG Group petrol forecourt empire two years ago.
While a price couldn’t be agreed or a deal structured, relations between the Canadian giant’s executive chairman Alain Bouchard and the Issas is understood to be positive, according to The Sunday Times.
The Issas and TDR Capital, co-owners of EG Group, have hired financial advisers Rothschild, Goldman Sachs, Morgan Stanley and Barclays to examine strategic options for the business.
However, in the time since talks with Couche Tard, the Issas and TDR Capital have acquired Asda, and unveiled plans to open 200 of the grocer’s convenience stores on EG Group forecourts by the end of next year.
The brothers have also acquired healthy fast-food chain Leon with plans to open stores on its petrol forecourts and potentially in Asda supermarkets.
The sale of EG Group could help the Issas to pay down billions of pounds of debts built up in the acquisition of Asda. EG Group reported profits of $1.27bn on sales of $20.7bn, and is expected to fetch a price in excess of £10bn should it be put up for sale.
Couche Tard has more than 14,000 forecourts and c-stores around the world and was forced to abandon a €16.2bn (£13.8bn) bid for French supermarket giant Carrefour in January, following fierce government pushback.
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