© Reuters. FILE PHOTO: Shoppers walk past the UK supermarket Asda, in Leeds, Britain, October 19, 2020. REUTERS/Molly Darlington/File Photo
LONDON (Reuters) – British supermarket chain Asda could be merged with petrol forecourts business EG Group under plans being explored by the owners of both companies, the London-based Times reported on Saturday.
The combination would create a retail giant worth between 11 billion pounds ($13.6 billion) and 13 billion pounds which would have more than 581 supermarkets, 700 petrol forecourts and 100 convenience stores in Britain, the newspaper said.
Brothers Zuber and Mohsin Issa and London-based private equity group TDR Capital have owned EG Group together since 2016. They later bought Asda.
Talks over merging the two businesses come ahead of a refinancing of EG Group, which has 7 billion pounds of debt due in 2025, according to the report.
Asda declined to comment on rumour or speculation. TDR Capital did not immediately respond to a request for comment.
The Issa brothers could not immediately be reached for comment.
($1 = 0.8069 pounds)
