Latest news with #IssaBrothers
Yahoo
4 days ago
- Business
- Yahoo
Billionaire Issa brothers' EG Group agree £367m sale of its Italian business as they repay debts
The Blackburn-based EG Group founded in 2001 by the town's billionaire Issa brothers has agreed the sale of its Italian business as it continues to repay its debts. The deal is valued at £367million and is expected to be completed subject to regulatory approval by the end of the year. The group – a leading international operator of convenience retail, foodservice and fuel stations, headquartered at Waterside in Haslingden Road, Guide – is making a full exit from the Italian market as part of its continuing strategy to focus on its core markets and strengthen its balance sheet. It is selling the Italian business to a consortium of established Italian operators comprising PAD Multienergy S.p.A., Vega Carburanti S.p.A., Toil S.p.A., Dilella Invest S.p.A., and GIAP s.r.l. Russ Colaco, chief executive of EG Group, said: 'We remain relentlessly focused on driving forward EG Group's growth strategy. This important transaction is fully aligned with this strategy, as we continue to focus on our core markets with the greatest growth potential and deliver on our deleveraging programme. READ MORE: Leaving AC off cools car down in 30 seconds, even on hottest day READ MORE: Lancs couple only work two days a week and 'anyone could do it' 'We are grateful to our colleagues in Italy for their hard work and dedication, and we wish the business continued success in the future.' A consortium representative said: 'The acquisition of EG Italia allows us to generate new and key synergies for the development of the fuel stations network with the expansion of the services offered also with a view to the energy transition. 'The EG network together with the networks of the consortium members, all leaders in their reference territories, will enhance the know-how and skills of the EG Italia organization, heir to the culture of Esso Italiana since 2018.' EG Group currently has operations in nine countries, with its single biggest market by revenue being the USA, followed by Europe, including Italy, Germany, France, Netherlands, Luxembourg, Belgium and the United Kingdom, as well as Australia. It currently employs about 38,000 working in more than 5,500 sites to deliver an international grocery, merchandise, foodservice and fuel retail proposition to nearly one billion customers each year. EG Group partners with global brands, and also has its own proprietary brands, including Cumberland Farms, Fastrac, Kwik Shop, Quik Stop, Sprint, Tom Thumb, and Turkey Hill in the USA, and Go Fresh in Europe. Subscribe to our daily newsletter LANCS LIVE NEWS and get all the biggest stories from across Lancashire direct to your inbox
Telegraph
23-06-2025
- Business
- Telegraph
Asda scraps new uniforms in cost-cutting push
Asda has scrapped plans to roll out new staff uniforms next year, as bosses seek to free up cash to spend on cutting prices and revamping stores. The company had carried out months of trials for the new designs, which included more breathable fabrics and darker green polo shirts, across 12 shops. Employees had hoped to receive the new uniforms by 2026 in what would have been the first major overhaul of its uniform in more than 12 years. The reversal signals a shift in focus at the struggling supermarket, as Allan Leighton, the chairman, prioritises investment in store upgrades and lowering prices. It follows years of decline at Asda, which has been losing ground to rivals ever since its debt-fuelled takeover by private equity firm TDR Capital and brothers Mohsin and Zuber Issa in 2021. Its market share stood at 15pc at the time of the deal, although the latest figures from Kantar show that this has now slipped to a record low of 12.1pc. Mr Leighton last month admitted that executives had 'some way to go' to boost sales at the supermarket, comparing the challenge to like having 'Everest to climb'. However, he sought to downplay the significance of the Kantar figures.
Telegraph
20-06-2025
- Business
- Telegraph
Issas' petrol station giant drops diversity goals before £13bn US listing
The Issa brothers' petrol station empire is rolling back diversity, equity and inclusion (DEI) targets as it gears up for a £13bn listing in the US. EG Group said it was no longer pursuing a goal to increase the number of women in senior leadership roles in the US, saying its diversity initiatives only applied 'in regions where legally permissible'. It previously had set a company-wide goal to increase the proportion of women in top roles to 40pc by 2025, from 20pc in 2021. However, the US – which is EG Group's largest market – has since been excluded from that objective. EG Group said it was also reviewing gender targets for the rest of the business, which includes operations in Australia and Europe. The UK arm of the company was sold last year. The retreat from diversity goals comes as EG appeared to fall short of its 40pc gender goal for 2025. By 2024, just 27pc of senior leadership roles were held by women, according to its latest filings, with the company admitting that this was 'some way off achieving [its] target'. The diversity shake-up comes as the billionaire Issa brothers push ahead with plans to list Blackburn-based EG Group in the US for as much as £13bn. EG Group is jointly owned by the Issa brothers and private equity firm TDR. TDR owns 50pc of the company, while Mohsin and Zuber hold 25pc each. The brothers have both stepped back from running the business over the past year. Meanwhile, the move to pull the US female representation target comes as more companies start to roll back their inclusivity programmes amid a crackdown by Donald Trump. The US president has banned companies with federal contracts from operating 'illegal' DEI programmes. It has meant a wave of UK businesses have started to ditch diversity efforts, including drug giant GSK and consulting giant Accenture. When addressing diversity in its latest report, EG said it wanted to ensure its targets 'are fit for purpose going forward and focused on the areas that matter most to our colleagues and customers, but also to our investors, regulators and wider society'. A spokesman said: 'EG Group complies with all relevant laws and regulations in the jurisdictions in which we operate. 'We remain committed to being an equitable and inclusive business, reflecting the diversity of our colleagues, customers and wider communities.'
Telegraph
11-06-2025
- Business
- Telegraph
Issa brothers face deadline to repay £30m private jet loan
The billionaire Issa brothers are facing a looming deadline to repay a $41m (£30m) loan that they took out to fund their private jets, new documents reveal. EG Group said it had served Mohsin and Zuber Issa a notice to repay the loan provided to their personal private jet business Clear Sky 2 LP by the end of June. If they fail to do so, the petrol forecourt giant said it would exercise its rights to recover the $41m loan, which is overdue. The borrowings include unsecured loans that EG initially gave to the brothers to buy the jets – a Bombardier Global 6000 and a Bombardier Challenger 350 – in 2018. The demand comes amid plans to float EG Group, which is owned by the Issa brothers together with private equity firm TDR Capital. EG Group has been lending funds to the private jet business, owned solely by the brothers, for years. However, EG is now seeking to recoup the funds after both brothers, who had founded the business in 2001, stepped back from running the day-to-day operations. Zuber relinquished a co-chief executive role last year, while Mohsin left in April. The Issa brothers built their fortune through EG Group, although the pair were catapulted into the spotlight after teaming up with TDR to acquire Asda in a £6.8bn deal in 2021. However, more recently, the two brothers have been attempting to disentangle their fortunes. Last year, Zuber announced the sale of his 22.5pc stake in Asda before setting up a rival petrol forecourts business called EG On The Move. Investing in start-ups Meanwhile, Mohsin has sought to invest in a string of UK start-ups, including protein maker Applied Nutrition and sportswear retailer Castore. The break-up of the interests followed rumours of a rift between the brothers, although the pair have sought to talk down any split. Company filings show that the brothers borrowed increasing amounts from EG to pay for the Clear Sky business, through which they own their private jets. This includes the outstanding $41m loan, which rose by $7m over the past financial year. EG Group said it served the brothers notice over the loan in April.
Daily Mail
29-05-2025
- Business
- Daily Mail
Asda boss shrugs off plunging sales and vows to press ahead with price war
The boss of Asda shrugged off tumbling sales as he cranked up a price war, and said he doesn't care about market share. Executive chairman Allan Leighton said his mission was seeing 'green shoots' after it slashed the price of thousands of products and improved stocks. Sales at the beleaguered supermarket chain, whose George at Asda fashion range is modelled by Yasmin Le Bon, plunged 5.9 per cent to £5billion for the three months to March 31. The news came a day after industry data from market researchers Kantar showed Asda's share of the market fell to 12.1 per cent – its lowest on record going back to 2011. But retail veteran Leighton, 72, said: 'Market share today means nothing to me. We're in a turnaround situation, restoring a business to an enduring proposition. 'That will take time. We're building a business for the future, not for the next five weeks.' He blamed the decline on a lack of price competitiveness and having 'had the worst availability in the industry'. But 'real progress' had been made since he became chairman in November, and it now has the 'best pricing position'. The grocer aims to be 7-10 per cent cheaper than rivals within the next year. Asda's market share has shrunk since its takeover four years ago by private equity firm TDR and the billionaire Issa brothers.
