Blackburn’s billionaire Issa brothers continued their business expansion spree with the supermarket chain Asda, co-owned by them, striking a £600 million deal with the Co-operative Group.
Asda said it would take over 132 sites from the Co-op as part of its growth strategy to move into the convenience market.
The purchase comprises 129 established sites with grocery retail stores and attached petrol filling stations and three development sites. The sites are located across the UK.
The deal - £438 million in cash and £162 million in lease liabilities - accounting for five per cent of Co-op’s retail estate is expected to be completed by the end of the year, Evening Standard reported.
The Leeds-headquartered Asda said the transaction would be financed through a combination of existing cash resources and bank finance.
Some 2,300 people currently employed in the Co-op stores will be transferred to Asda after the formal completion of the acquisition.
Asda co-owner Mohsin Issa said the deal would help Asda reach more customers and communities across the UK.
“We have always been clear in our ambition to grow Asda and are hugely excited to create this new and distinct part of our business,” he said after reaching the purchase agreement with Co-op.
“We see convenience as a significant growth opportunity for the business”, he said adding that the acquisition “forms part of our long-term ambition to become the UK’s second-largest supermarket.”
Co-op chief executive Shirine Khoury-Haq said the deal was part of the British consumer co-operative’s strategy to move away from operating petrol forecourts.
The Issa brothers - Mohsin and Zuber - who built their retail empire starting with just a fuel station in 2001, had taken over Asda from Walmart in a £6.8 billion deal. The acquisition also meant that the company, founded in 1949, came back under British ownership.
The EG Group, also co-owned by the siblings and TDR Capital, bought out Britain’s second-largest bakery chain Cooplands last year for an undisclosed amount.
Asda to acquire 132 Co-op retail stores for £600m
The purchase comprises 129 established grocery stores with attached petrol filling stations and three development sites
During the hearing, Clifford denied all the charges except for the rape charge, which was added to the indictment at the session. (Photo: Hertfordshire Police /Handout via REUTERS)
Man pleads not guilty to murder of BBC presenter's family
A 26-year-old man has pleaded not guilty to charges of murdering the wife and two daughters of BBC sports commentator John Hunt in a crossbow and knife attack.
Kyle Clifford, who also faces charges of rape, appeared via video link at Cambridge Crown Court on Thursday.
Clifford, arrested in July after a manhunt, is charged with three counts of murder, one count each of rape and false imprisonment, and two counts of possessing offensive weapons – a 10-inch knife and a crossbow.
During the hearing, Clifford denied all the charges except for the rape charge, which was added to the indictment at the session.
He is expected to enter a plea for that charge at a later date.
The victims were Carol Hunt, 61, wife of horseracing commentator John Hunt, and their daughters Louise, 25, and Hannah, 28.
An earlier hearing revealed that Louise had been found tied up and that both she and her sister had been shot with a crossbow, while their mother had been stabbed with a knife.
The fatal attack occurred at the family’s home in Bushey, a commuter town near Watford, northwest of London.
(With inputs from AFP)