EG Group is to sell 27 of its petrol stations to the Park Garage Group as part of a previous agreement with the competition regulator for approval of the takeover of Asda by the Issa brothers.
In June, the Competition and Markets Authority (CMA) announced that it had agreed on formal undertakings offered by Mohsin and Zuber Issa and TDR Capital to divest some of EG’s forecourts to address competition concerns around fuel prices relating to their acquisition of Asda and its petrol stations.
The 27 sites in the deal include 26 sites required by the CMA to be divested, plus one other non-core location. EG stated that negotiations in connection with the single additional site required to be divested by the CMA are in an advanced stage, adding that it expects to be in a position to complete the transaction in the coming weeks.
“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. 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,” said the Issa brothers, who are co-founders and co-CEOs of the EG Group.
Balraj Tandon and Sunil Tandon, Chairman and Managing Director of Park Garage Group, added: “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.”
The Park Garage Group currently operates 49 forecourt stores.
