BLACKBURN-based The EG Group is to buy Asda's petrol forecourt business for £750m it has been announced.

In October it was announced that the shareholders in EG Group, the Issa brothers and TDR Capital LLP, had reached an agreement to acquire a majority ownership stake in Asda, which was formerly owned by US giant Walmart.

EG Group now said it had agreed to acquire certain assets of Asda, comprising its petrol filling stations, car washes and ancillary land for £750m.

EG’s acquisition of the forecourt business is subject to the same regulatory clearance being received by the group’s shareholders for their acquisition of Asda. Subject to these approvals, the transaction is expected to be completed in the spring.

EG Group has a portfolio of thousands of filling stations across the world but the ones involved in this deal will continue to be Asda branded and will 'remain a price leader in the fuel market'.

Zuber Issa and Mohsin Issa, co-founders and co-CEOs of EG Group, in a joint statement, said: “We are excited to have the opportunity to further strengthen our network in the UK through the proposed acquisition of Asda’s forecourt business, which will enhance our position as a major independent forecourt operator and provide a platform for future growth of the combined network.”

It was also announced that the completion of Asda acquisition itself is on track to complete later this month.

After regulatory approval, the Asda board will comprise Mohsin and Zuber Issa, Manjit Dale and Gary Lindsay of TDR Capital and Chris Nicholas, EVP and Chief Financial Officer for Walmart International, in addition to Asda CEO Roger Burnley who will also join the board. In due course, independent directors will be appointed to the board.

EG Group will announce its Q4 and full year 2020 trading results on Thursday February 25, 2021.