The sale of Asda forecourts to EG Group has been abandoned after the two companies were able to share commercial information with each other.
The Issa brothers have pulled EG Group’s planned acquisition of Asda’s petrol forecourts business. EG Group said that the proposed deal, which was first announced in February, has been terminated as a result of commercial information.
The information was previously not able to be disclosed between the two parties due to UK competition law being made available for the first time. EG Group said that these restrictions, which were lifted on June 16, allowed the two businesses “to start sharing commercial information relating to EG’s acquisition of the Asda forecourt business”.
As a result, EG Group’s planned acquisition of Asda’s forecourt business for £750 million has been terminated. EG Group will instead redeem the £675 million in aggregate principal amount of 6.25 per cent of senior secured notes due issued in March, as well as unwind the related escrow arrangements.
Asda will retain its petrol forecourts business and its associated sales and profits.
“Key commercial initiatives between EG and Asda are already well under way, including the development of plans to introduce foodservice at Asda locations and the expansion of Asda’s convenience offering, where both companies have confirmed their intention to roll out the Asda on the Move proposition across EG’s UK forecourts,” EG Group said.
“These plans remain unchanged and the company continues to anticipate synergies as a result of its growing relationship with Asda.”
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