British supermarket chain Asda, and EG Group have terminated a deal that would have seen EG buy Asda’s petrol forecourts for £750 million (US$1.03 billion), reported Bloomberg Quint.
Both Asda and EG are owned by Zuber and Mohsin Issa and private equity group TDR Capital. The deal was initially struck in February. However, regulatory restrictions placed on the Issa brothers and TDR were not lifted until June.
“EG and Asda have decided they will no longer proceed with the transaction, and it was terminated as of 18 October,” both companies stated.
Asda also stated it remained confident it will continue to derive synergy benefits from its strategic alliance with EG, including setting up various food service offerings at Asda stores and the expansion of Asda’s convenience store offering.
According to The Financial Times, EG will now redeem a £675 million bond that it issued to finance the proposed deal. The group still intends to pursue other commercial initiatives with Asda, including the rollout of Asda On The Move convenience stores.
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