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Bloomberg
EG Group is exploring a merger of its petrol forecourts with Asda Group Ltd. to create a business valued at more than £10 billion ($12 billion), according to the The Times.
The Issa brothers and London-based TDR Capital are considering the combination with the supermarket chain to help refinance £7 billion of debt due in 2025, the paper said. EG’s operating profit will barely cover its interest expenses, which are set to jump by about $120 million to $800 million this year, the Times said, citing Roberto Pozzi, an analyst at the credit-rating agency Moody’s. The merger would create a business with 581 supermarkets, 700 petrol stations and more than 100 convenience stores.