EG Group’s auditor Deloitte has resigned just weeks after the petrol station giant’s co-founders sealed a £6.8bn deal to acquire Asda.
The big four accountancy firm has stepped down with immediate effect due to concerns over EG’s governance and internal control, according to the Financial Times.
EG Group, which was co-founded by Zuber and Moshin Issa and now owns around 6,000 petrol stations globally, reportedly sent a note to bondholders informing them that KPMG had been appointed as its new auditor following the abrupt resignation of Deloitte after four years in post.
EG Group did not disclose the reason for Deloitte’s resignation, but four people with close knowledge of the matter told the Financial Times the accountancy firm’s departure had been triggered by governance concerns, with one pointing out that Deloitte’s unease stemmed from EG Group’s internal controls not keeping pace with its growth.
EG said in a statement: “As in previous years, Deloitte signed a clean audit for EG Group’s 2019 financial statements, and there have been no disagreements on any auditing or accounting matters.
“We are pleased to be working with KPMG going forward, and remain committed to making continued progress with our internal processes, controls and governance.”
EG Group had no plans to change its auditor having reappointed Deloitte to the role as confirmed in its annual report in July.
Deloitte and KPMG declined to comment.
EG Group’s co-founders the Issa brothers sealed a £6.8bn takeover bid for the UK’s third largest grocer Asda earlier this month.
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