EG Group is selling 27 petrol filling stations to rival Park Garage Group, as part of the undertakings made by its owners, the Issa brothers, in their takeover of Asda.
Mohsin and Zuber Issa and TDR Capital reached an agreement in June with the Competition & Markets Authority to divest some of EG Group’s forecourt sites to address the competition concerns relating to their separate acquisition of Asda.
The 27 sites include 26 required by the CMA to be divested, plus one other non-core location. EG Group said it remained in negotiations over the sale of a single additional site required to be divested by the CMA.
These talks are at an advanced stage and EG expects to be in a position to complete the transaction in the coming weeks.
All staff employed at the forecourts included in today’s deal will transfer to Park Garage Group.
“We received significant interest in the sites we marketed, reflecting how these high-quality assets have been acquired, developed and invested in by EG Group over the last few years,” said the Issas.
“We are pleased that the sites will be going to an established industry operator in Park Garage Group, a family-run business that is growth orientated.”
Balraj and Sunil Tandon, chairman and MD of Park Garage Group respectively, said in a joint statement: “We are delighted to have reached an agreement to acquire these sites, particularly due to their quality, which has been cultivated by EG Group. The acquisition underlines our commitment to growth and innovation, and will enable our sons, Manoj Tandon and Hemant Tandon, to further build our industry footprint. We would like to thank EG Group for working seamlessly with us on this acquisition.”
No comments yet