Asda owners tying up £10bn merger with petrol giant EG
The billionaire owners of Asda and petrol giant EG are reportedly gearing up to tie a ribbon on their £10bn merger in Britain.
The deal, which will create a cluster of 170,000 employees and revenues of £30bn, is set to be announced on Friday, according to reports in Sky News.
If confirmed, the group will also now operate nearly 1,400 outlets split between a range of supermarkets, petrol stations and convenience stores.
It comes as Asda previously acquired 130 petrol sites from Co-op for £611m but handed 13 sites back after it sparked competition concerns from the CMA.
Banking sources told the outlet that Apollo Global Management had been lined up to “provide more than £500m of private placement debt to finance the deal between Asda and EG UK”.
Apollo was one of the leading investors to buy Asda from Walmart when it was put up for sale in 2020 – however the grocery giant was snapped up billionaire Issa brothers and TDR Capital.
Rumours about an Asda and EG merger have been circulating for the past six months, with The Sunday Times initially reporting the news.
Asda and EG have been contacted for a comment.