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Brothers Zuber (left) and Mohsin Issa say they will continue to work closely together as fellow board members and shareholders in EG Group

Zuber Issa is selling his shares in Asda to buy the remaining 34 forecourts owned by his family’s EG Group in a £228m deal, which includes certain standalone foodservice locations and is expected to complete the second half of 2024.

TDR Capital is acquiring Zuber’s share in the supermarket chain, increasing its stake to 67.5% to become majority shareholder.

Once the transaction completes, Zuber Issa will step down as co-chief executive of the EG Group but will remain a non-executive director, leaving his brother Mohsin Issa to become sole chief executive. Zuber, Mohsin and TDR Capital will continue to be shareholders in EG Group.

The deal, which does not include the Cooplands bakery business or the evpoint ultra-fast charging arm, will enable EG Group to pay off debt and strengthen its balance sheet.  

Zuber, who co-founded Blackburn-based EG Group with Mohsin with a single forecourt in Bury in 2001, said: “With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired, and spend more time on my charitable endeavours. I am pleased to see TDR increasing its investment in Asda. With Mohsin and TDR’s ongoing focus and shareholding, I am confident that Asda will achieve its growth ambitions.”

Lord Stuart Rose, chairman of EG Group, said: “I would like to thank Zuber for his incredible leadership, which has been central to building one of the largest and most entrepreneurial private companies in the UK. EG Group is a UK success story on the global stage that has created significant opportunities for people in Blackburn and other local communities in the group’s international markets – and pioneered the foodservice model at the roadside.

”With Mohsin remaining as sole CEO, the business is in the right hands and well-placed for further success. I look forward to continuing to work with Mohsin and Zuber on the board of EG Group as we focus on growing the international business and ensuring EG plays a key role in the energy transition.”

In a joint statement, Mohsin and Zuber, said: “We have had an amazing journey together building EG Group over the last 20 years and we look forward to continuing to work closely together as fellow board members and shareholders in EG Group.

”The company is well positioned for future growth and success, with a strong international portfolio and a growing EV business. We are both – and the wider board – laser-focused on our key growth opportunities. Encouragingly, following the significant progress to strengthen our balance sheet, we have a capital structure which allows us to take advantage of the opportunities ahead of us continuing to deliver our best-in-class services to our customers around the world.

“Given our shared background in building great businesses, the board and everyone at EG understand Zuber’s desire to return to his entrepreneurial UK roots by acquiring the remaining UK forecourt business including new to-industry developments and certain standalone food service concessions – as well as dedicating more time to his family and our charitable activities.”

Michael Bradley has also stepped down as group chief financial officer at EG Group, and is replaced by Russell Colaco, who will join as global chief financial officer.

Zuber and Mohsin co-founded EG Group in 2001 and under their leadership, the business has grown from a single site to a global company with more than 5,500 forecourt and food service locations in North America, Europe and Australia. EG Group claims to be the third-largest independent convenience retail chain globally, the fifth in the USA, and second in Continental Europe and Australia.

Following the divestment of the forecourt sites, EG Group will maintain a presence in the UK through Cooplands, its wholly-owned bakery business, its growing charging network, evpoint, and its Starbucks franchise. The group says it will continue to deliver its strategy to deploy emerging fuels and EV chargers, under the evpoint brand, across the existing Asda network, as well as third-party locations.