Asda commits to cutting prices as it completes £2bn acquisition of EG Group’s UK business

In a statement, Asda said: “This transaction builds on Asda’s acquisition of 119 convenience sites with attached PFS from the Co-op Group, which started to convert to the Asda Express fascia earlier this month, and the successful launch of three stand-alone Asda Express convenience sites since October 2022.

“The EG and Co-op acquisitions, plus the three Asda Express stores currently open, give Asda 478 convenience stores today, with a commitment to opening a further 300 stand-alone convenience stores by the end of 2026.

" This is in addition to its existing estate of 580 supermarkets and 31 Asda Living stores, as well as 321 PFS sites.”

Mohsin Issa, the co-owner of Asda said: “This is a great day for Asda and for millions of UK consumers.

"Asda is a much-loved brand that is instantly recognised for great value. I could not be more proud or excited that the iconic Asda sign is now coming to hundreds more communities.”

A spokesman said Asda’s growth strategy in the convenience sector is a key part of its ambition to become the UK’s second largest supermarket chain.

The acquisition also accelerates Asda’s move into the £62bn foodservice market, with the transfer of 462 Greggs, Burger King and Subway outlets as franchise agreements.

Asda now wholly owns Leon, which it will also look to introduce to its stores. The acquisition of EG Group’s UK business will create a group with expected combined revenues of nearly £28bn, serving some 21m customers every week.

Lord Stuart Rose, chairman of Asda, said: “As families continue to face into cost-of-living challenges, bringing Asda’s long-standing value in groceries and fuel to even more communities is a win for UK consumers.

"Asda has shown through its actions over the last 18 months that it is firmly on the side of consumers - whether that’s through its Just Essentials range, Kids Eat for £1 or Asda Rewards – which has put over £200m back in the pockets of shoppers through their Cashpot. This commitment is backed up by the fact it has held the title of the lowest-priced traditional supermarket for 26 years in a row.

Mohsin Issa, co-owner of Asda, added: “We have worked at pace over the last 12 months to deliver a compelling convenience proposition from a standing start - as well as investing more than £120m in lowering the price and further improving the quality of our food.

"With the deal complete, we can focus on delivering the growth opportunities.

"That means lowering the price of fuel for more motorists, bringing Asda’s great value and quality to more communities, offering greater opportunities to our supplier partners and creating sustainable job opportunities for colleagues in our stores and depots.”

Gary Lindsay, Managing Partner at TDR Capital LLP, said: “This transaction is all about growth and bringing together the complementary strengths of Asda and EG UK."

"We are creating an enhanced and more diverse Asda business that delivers even greater value for its customers on a daily basis in stores and online.”