EG Group & Asda Merger Under Consideration

BLACKBURN, United Kingdom — EG Group founders and co-CEOs Moshin and Zuber Issa are considering a possible merger with British supermarket chain Asda, according to sources close to them.

Such a merger could result in a combined business worth more than $34.6 billion (£26 billion), including debt.

A merger is one of several strategic alternatives currently under consideration, reported Bloomberg. If it proceeds, EG Group would operate a wide range of store formats, running from small outlets to large supermarkets, and have greater bargaining power with suppliers.

EG Group, which is backed by private equity firm TDR Capital LLP, announced plans to acquire Leeds, U.K.-based Asda from Walmart Inc. in October 2020. Walmart still holds a minority stake in Asda.

In recent months, EG Group and Asda have collaborated on multiple initiatives, according to Retail Gazette. These include expanded foodservice at Asda locations and the addition of Asda on the Move convenience stores at EG Group fueling sites.

Through its U.S. subsidiary, Westborough, Mass.-based EG America, EG Group owns and operates more than 1,700 c-stores across 31 states under the Cumberland Farms, Certified Oil, Fastrac, Kwik Shop, Loaf 'N Jug, Minit Mart, Quik Stop, Tom Thumb and Turkey Hill banners.