The move will see its new convenience brand Asda Express rolled out across 356 EG stores in the UK, building on the 119 convenience sites that Asda acquired from Co-op Group in 2022.
Asda began converting the former Co-op sites to the Asda Express fascia earlier this month (October 2023), while it has also opened three standalone express stores. With the EG locations added to its portfolio, Asda now operates 478 convenience stores and has committed to opening a further 300 standalone stores by 2026.
The deal also includes the transfer of 462 Greggs, Burger King and Subway outlets as franchise agreements. Asda already owns foodservice brand Leon and is planning to introduce the fast food chain into its convenience stores.
Since 2021, Asda has been jointly owned and controlled by private equity firm TDR Capital and Zuber and Mohsin Issa. The brothers founded EG Group in 2001 and remain shareholders, while TDR also holds a stake in EG Group.
The acquisition of EG’s UK business takes total group revenue to almost £28bn. Asda currently operates 580 supermarkets and 31 Asda Living stores, as well as 321 petrol filling stations.
Asda ‘investing £120m in lowering prices’
Speaking after the announcement, Mohsin Issa said that the move represented a “great day” for the business.
“We have worked at pace over the last 12 months to deliver a compelling convenience proposition from a standing start - as well as investing more than £120m in lowering the price and further improving the quality of our food,” explained Issa.
“With the deal complete, we can focus on delivering the growth opportunities. That means lowering the price of fuel for more motorists, bringing Asda’s great value and quality to more communities, offering greater opportunities to our supplier partners and creating sustainable job opportunities for colleagues in our stores and depots.”
Meanwhile, TDR managing partner Gary Lindsay said that the deal would bring together the “complementary strengths” of the two firms.
Lindsay continued: “We are creating an enhanced and more diverse Asda business that delivers even greater value for its customers on a daily basis in stores and online. Becoming the number two UK supermarket again and delivering a stronger and more compelling proposition for UK consumers are the metrics we will judge the success of this transaction by.”