British supermarket group Asda has announced plans to acquire petrol station operator EG Group's UK and Ireland business to create a company with combined revenues of nearly £30 billion (€34.62 billion).
It said it would acquire around 350 petrol stations and over 1,000 food-to-go locations in the deal, which is expected to close in the fourth quarter.
Asda said it planned to invest more than £150 million (€173.1 million) within the next three years to fully integrate the combined business.
As part of the transaction, the shareholders are providing around £450 million (€519.3 million) of additional equity to fund the transaction.
“Asda’s acquisition of EG UK and Ireland will create a consumer champion like the UK has never seen," commented Asda chair Stuart Rose. "Throughout my career in retail – one thing has always been true, that meeting the evolving needs of customers is the route to growth.
“This transaction is all about driving growth by bringing Asda’s heritage in value to even more communities and accelerating the growth of its convenience retail business.”
Asda, which said that it reported like-for-like sales growth of 7.8% in the the three months to 31 March, added that Mohin Issa will continue to lead the business following the merger, while Asda commences a search to appoint a new group chief executive.
“Asda is committed to saving customers precious time and money across their shopping baskets and on the forecourt," Issa commented. "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."