Lancashire brothers take-over Asda in £6.8billion deal

The billionaire brothers behind petrol forecourt firm EG Group and private equity firm TDR Capital have won the £6.8 billion takeover battle for supermarket giant Asda.

Walmart, the supermarket chain's US owner, has accepted a bid led by Lancashire brothers Mohsin and Zuber Issa following a lengthy auction process.

It means that the supermarket will return to majority UK ownership for the first time in two decades, although Walmart will retain a minority stake in Asda as part of the agreement.

The new owners have committed to keeping the retailer's headquarters in Leeds and have said they will invest to grow its convenience and online operations.

The Issas said: "We are very proud to be investing in Asda, an iconic British business that we have admired for many years.

"Asda's customer-centric philosophy, focus on operational excellence and commitment to the communities in which it operates are the same values that we have built EG Group on."

The Issa brothers founded EG in 2001, expanding it from a single site in Bury, Greater Manchester.

The deal comes more than a year after a proposed merger between Asda and UK supermarket rival Sainsbury's was torpedoed by regulators.

Asda has seen its fortunes improve recently with trading strengthening through 2020, as shoppers have spent more money on groceries during the pandemic.

Blackburn-based EG Group, formerly known as Euro Garages, already runs forecourt convenience stores for Spar and French hypermarket chain Carrefour.

The deal will have to pass through regulators, although it is expected to be given the green light.

Last week, EG Group announced a trial involving three "Asda on the Move" convenience stores at its petrol forecourts.

TDR Capital, which also owns the UK's largest pub group Stonegate, owns a 50% stake in EG Group, sharing ownership with the Issa brothers