Published by Insider Media
EG GROUP CANCELS £750M DEAL FOR ASDA'S FORECOURT BUSINESS
EG Group has elected not to proceed with a £750m deal to acquire Asda's forecourt business.
It was announced in February 2021 that the group had agreed a deal to acquire the supermarket giant's forecourt business, including petrol filling stations, car washes and ancillary land.
In June, the ongoing restrictions imposed under UK Competition Law and the subsequent Competition and Markets Authority 'Hold Separate Order' on the acquisition of Asda by TDR Capital and the Issa brothers were lifted.
This allowed Asda and EG Group's teams to start sharing commercial information relating to EG's acquisition of the Asda Forecourt Business, which had not been previously possible, and resulted in several changes to the financial evaluation of the proposed transaction.
As a result, EG and Asda have decided they will no longer proceed with the deal, which has been terminated as of October 18, 2021.
EG Group said that key commercial initiatives between EG and Asda were already underway, including 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.
It emphasised that these plans remain unchanged, and the group "continues to anticipate synergies as a result of its growing relationship with Asda".
EG Group will now begin the process to redeem the £675m in aggregate principal amount of 6.25 per cent senior secured notes due 2026 issued on 12 March 2021 and unwind the related escrow arrangement.