| Asda has acquired EG Group's U.K. and Ireland gas station business for $2.81B, creating a convenience company with $37.2B in annual revenue and positioning Asda as the second-largest grocer in the U.K. The purchase includes around 350 petrol stations and over 1,000 food-to-go locations. - According
to Asda Chairman Stuart Rose, EG forecourts will eventually migrate to
the Asda brand, and prices at Asda will stay the same due to the
acquisition.
- Asda will expand Asda Express across EG premises
as part of the agreement, and EG Group's Leon outlets will be included
in Asda's lineup of retail locations.
- The Issa brothers, TDR, and Walmart are a few of the investors in Asda who will contribute about $557.65M in stock to the deal.
- The
transaction is anticipated to improve Asda's balance sheet, increase
earnings after rent, and produce synergies worth about $123.93M over the
following three years.
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