5/30, 9:48 AM (Source: TeleTrader)
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Asda to acquire EG Group for £2.3 billion

British supermarket chain Asda Group announced on Tuesday that it is buying gas station operator EG Group's business in the United Kingdom and Ireland for an estimated enterprise value of £2.3 billion. The acquisition includes around 350 filling stations and over 1,000 food-to-go locations, although the EG Group will retain around 30 filling stations in the UK.

Asda said it plans to invest more than £150 million within the next three years to "fully integrate the combined business." As part of the transaction, the shareholders are providing around £450 million of additional equity to fund the transaction, which is expected to close in the fourth quarter of 2023. "Asda is committed to saving customers precious time and money across their shopping baskets and on the forecourt. The combination of Asda and EG UK&I will be positive news for motorists, as we will be able to bring Asda’s highly competitive fuel offer to even more customers," Asda co-owner Mohsin Issa said.

Baha Breaking News (BBN) / DJ