The Issa brothers are considering merging Asda with their forecourt business EG Group in a move that would create a combined business estimated to be worth more than £26bn.
According to reports, the billionaire brothers, who started their empire with a single petrol station in Bury, are looking at a range of ‘strategic alternatives’ for EG Group.
Alongside TDR Capital, the Issa's agreed to a deal last year to acquire control of Asda worth an estimated £6.8 billion.
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Since then, Mohsin and Zubair Issa have expanded food service at Asda stores and rolled out a number of ‘Asda On the Move’ convenience stores at EG Group filling stations nationwide.
Sources told Bloomberg the combined businesses could ‘create a sprawling retail operation’ and give EG Group ‘greater bargaining power’ with suppliers.
Deliberations are said to be ongoing with ‘no certainty’ they would lead to a transaction.
Representatives for TDR and EG Group declined to comment on the proposals.
In October, the billionaire's abandoned plans which would have seen them acquire Asda petrol stations in a deal estimated to be worth around £750m.
The plans were squashed after ‘several changes to the financial evaluation of the proposed transaction’.
Last week, the Issa brothers opened their first ever drive-thru Leon restaurant.
The business tycoons also announced plans for a multi-million pound cemetery in Lancashire.
