EG Group is selling the forecourts under a competition deal that says it now owns too many petrol outlets, so it is shifting several over to rival Park Garage Group
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EG Group is selling 27 petrol filling stations to Park Garage Group, as part of a deal made by the billionaire Issa brothers in their takeover of Asda.
EG Group is owned by Mohsin and Zuber Issa, who agreed to buy Asda’s forecourts in February alongside private equity firm TDR in a deal worth £750million.
In June the Issas agreed to sell some of the EG Group petrol stations due to competition concerns from the Competition and Markets Authority (CMA around their separate buyout of Asda .
EG Group said it is still talking about selling a single additional site required to be flogged off by the CMA.
EG Group owns 6,000 forecourts, as well as various fast food brands in Europe and the US.
All staff employed at the 27 EG Court forecourts being sold will swap over to Park Garage Group.
A joint statement from the Issa brothers said: “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.”
Balraj and Sunil Tandon, chairman and managing director of Park Garage Group respectively, said: “We are delighted to have reached an agreement to acquire these sites, particularly due to their quality, which has been cultivated by EG Group.”
Yesterday EG Group bought one of the UK’s biggest bakeries .
The EG Group did not say how much it paid for CS Food Group Holdings, which is behind Cooplands bakery.
CS owns three bakeries that process ingredients and manufacture fresh food.
Founded by Frederick and Alice Coopland in 1885, the company employs more than 1,600 people.
Cooplands food is sold to around 180 stores and cafes – which are mostly in the North East and Yorkshire, the Manchester Evening News reports .
But the buyout will see Cooplands food sold around the country, through the EG Group network of petrol station forecourts and shops.
Last year EG bought 146 KFC branches in the UK and Ireland, as well as restaurant chain Leon in April this year.
The company is also in a good position to buy coffee chain Caffe Nero after buying up the struggling coffee chain’s debts in April.
The Issa brothers are from Blackburn, but their parents Vali and Zubeda initially lived in Bradford after moving to the UK from Gujarat in India during the 1970s to work in the textile industry.
Mohsin, 49, and Zuber, 48, started out in a garage which their dad, who had worked in a woollen mill, bought.
They branched out on their own, first renting a petrol station for two years, then in 2001 buying their first forecourt, a derelict freehold site in Bury, and formed Euro Garages.
Their empire, the EG Group, now employs 44,000 people.
In 2017, it bought 77 Little Chef roadside restaurants.