Zuber Issa plans £600m acquisition of petrol station rival

Zuber sold his 22.5 per cent stake in Asda to private equity group TDR Capital

• Pramod Thomas
• 03 December, 2024

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By: Pramod Thomas

ZUBER ISSA, the billionaire entrepreneur and former co-owner of Asda, is reportedly close to securing a £600 million deal to purchase Petrogas Group, the UK arm of Irish forecourt operator Applegreen.

This marks his first major business move since stepping away from EG Group and dividing his extensive business empire, reported the Telegraph.

Petrogas Group, majority-owned by US private equity firm Blackstone, operates over 100 petrol stations across the UK under the Applegreen brand.

Last year, the group recorded revenues of £633m. If the deal goes through, it will significantly enhance Zuber’s plans to expand his new venture, EG On The Move, by acquiring over 120 additional UK forecourts in the next three years.

The transaction, code-named Project Chesnut, has been backed by Dutch lender Rabobank, which is providing financial support to EG On The Move. Zuber’s newly-formed business has already acquired 46 forecourts from EG Group, laying the groundwork for his next phase of growth.

According to the report, EG On The Move aims to establish itself as a prominent forecourt and convenience retail operator in the country. The company is focused on modern features such as electric vehicle charging stations and partnerships with popular brands like Greggs and Subway.

Rabobank adviser Thomas Levin said, “Rabobank is delighted to charge ahead as a strategic partner to newly-formed EG On The Move in providing new working capital facilities to support its exciting growth plans led by Zuber Issa.”

Zuber co-founded EG Group in 2001 from a single petrol forecourt in Bury and, along with his elder brother Mohsin, expanded it into a global empire through aggressive acquisitions financed by low-cost debt. The group became the foundation of their multibillion-pound fortune and was instrumental in the brothers’ high-profile acquisition of Asda for £6.8 billion in 2021.

Earlier this year, Zuber sold his 22.5 per cent stake in Asda to private equity group TDR Capital, severing his ties with the supermarket chain. His departure from EG Group in October further signalled his intent to forge an independent path.

Despite speculation about tensions between the brothers, Mohsin has publicly dismissed claims of a rift. In a rare interview earlier this year, he stressed that their relationship remained strong and that they spoke daily. “We’ve been on a journey and have a long way still to go,” he said at the time.

While Mohsin has shifted focus to investing in emerging UK start-ups, Zuber has kept a relatively low profile.

An EG On The Move spokesperson confirmed the company’s ambitious plans. “EG On The Move owns and operates 46 high-quality petrol forecourt stations with a comprehensive convenience retail offer alongside 153 food service concessions and 171 EV fast charging points across the United Kingdom and continues to make good progress with its growth strategy,” the spokesperson was quoted as saying.

Both Applegreen and Blackstone have declined to comment on the ongoing negotiations. However, industry observers view Issa’s move as a significant shake-up in the UK petrol forecourt sector