EG Group Pulls Out Of £750m Deal To Buy Asda’s Petrol Stations

After agreeing to buy Asda, Mohsin and Zuber Issa, the founders of EG, and their private equity backers TDR Capital, announced plans in February to finance the acquisition in part by selling the supermarket’s petrol stations to their own forecourts business for £750m.

Asda will retain the petrol forecourts business and the associated revenue and profits. However, the £750m expected from the deal will now come from £500m of debt and £250m of its own cash.

NamNews Implications:

• £500m extra debt means sweating Asda more…
• Apart from pressures on costs of goods and shelf price increases.
• Fingers crossed re the £1bn sale of Asda distribution assets.

#PrivateEquity #Asda #RetailDebt