UK: EG Group drops £750m Asda petrol stations deal
The two companies will continue to enjoy synergies despite the failure of the acquisition.
British supermarket chain Asda and EG Group have terminated a deal that would have seen EG buy Asda’s petrol stations for £750 million ($1.03 billion), it was announced this Monday.
Both Asda and EG are owned by the Issa brothers and private equity group TDR Capital.
The Lancashire-headquartered company had only recently agreed a deal to sell almost 30 of its own petrol stations sites to appease concerns raised by the Competition and Markets Authority.
The deal was initially struck in February. However, regulatory restrictions placed on the Issa brothers and TDR were not lifted until June.
Only then could the Asda and EG Group's teams start to share commercial information relating to EG's purchase of the petrol forecourts, reports Reuters.
Last month Asda announced plans to establish 28 new “Asda On the Move” convenience stores at EG forecourts this year.
