EG Group and Bellis Acquisition Co. along with Bellis Topco Limited have scuttled a February deal for EG to acquire certain forecourt assets of Asda.
The sharing by both parties of commercial information subsequent to EG’s acquisition of the Asda Forecourt Business yielded several changes to the financial evaluation of the deal resulting in its termination this week.
Asda remains confident that it will continue to derive synergy benefits from its strategic alliance with EG through key initiatives already underway, including the development of plans to introduce foodservice at Asda locations and the expansion of Asda’s convenience offering, where both companies have confirmed their intention to roll out the Asda On the Move proposition across EG’s UK forecourts.
Asda recently announced plans to establish 28 new Asda On the Move convenience stores at EG forecourts this year, with a target of 200 by the end of next year and the ambition to roll out more sites in 2023.
Asda will retain the petrol forecourts business and the associated revenue and EBITDA. The forecourts have been an important footfall driver to the business, supported by its position as a price leader in the supermarket fuel sector.
Subject to market conditions, management plans to settle the Forecourts Bridge Facility through a combination of £250 million cash on hand and a new issuance of long term senior secured debt of £500 million.