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DEALMAKERS
IN ASSOCIATION WITH:
By Ged Henderson
BROTHERS TAKE DIFFERENT ROADS
It had been rumoured to be on the cards. But the announcement that Blackburn’s Issa brothers were going their separate ways was still a massive moment.
A raft of announcements in early June heralded the end of a close family partnership that had built a towering business empire. It had its beginnings in 2001 when Zuber and Mohsin bought a run-down petrol station close to Bury town centre.
The brothers rise to the top saw them revolutionise the petrol forecourt sector and build their Blackburn headquartered Euro Garages brand into a global company, acquiring petrol stations, convenience stores and restaurants worldwide along the way.
However, their biggest business coup came in 2020 when the brothers and private equity firm TDR Capital joined forces to buy supermarket giant Asda from US giant Walmart for £6.8bn.
Both Issas made the 2023 Sunday Times Rich List, placed as the fifth wealthiest in the North West.
Publicity-shy, there were few media interviews along the way. Though in March, Mohsin told the BBC that despite Asda’s heavy debt pile he was “here for the long haul”.
He also dismissed rumours of a rift with his brother Zuber, saying the pair “get on exceptionally well”.
He told the broadcaster: “We talk to each other probably two or three times a day. We’ve been very, very privileged. We have been on a journey and we have a long way still to go.”
Just three months later and the brothers were heading in different business directions. And here’s what the raft of announcements means for them and their future plans.
Zuber has sold his stake in supermarket giant Asda and acquired the forecourt division of the EG Group.
His share in Asda has been purchased by TDR Capital, increasing its holding to 67.5 per cent.
The group is the third-largest independent convenience retail chain globally, the fifth in the US, and second in Continental Europe and Australia.
The business will maintain a presence in the UK through Cooplands, its wholly- owned bakery business, the group’s rapidly growing charging business, evpoint, and its Starbucks franchise business.
EG Group is a UK success story on the global
stage that has created significant opportunities for people in Blackburn and other local communities in the group’s international markets – and pioneered the foodservice model at the roadside
Mohsin retains his 22.5 per cent share and Walmart holds the remaining 10 per cent.
At a price of £228m, Zuber has acquired the petrol forecourts business on which the EG Group’s success has been built, alongside a number of standalone foodservice locations.
He steps down as co-chief executive of the group, but retains his shareholding and will serve as a non-executive director. And he will also focus on his charity work. The EG Group, headed by Mohsin as sole chief executive, will now focus on its convenience food shops which span three continents: North America, Europe and Australia.
In a statement, Zuber said: “Since Mohsin and I, alongside TDR, took ownership of Asda, we have driven a period of significant investment and entrepreneurial growth activity. Notably, Asda acquired a market-leading UK convenience retail and foodservice store business from EG Group.
“With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired, and spend more time on my charitable endeavours.
“I am pleased to see TDR increasing its investment in Asda. With Mohsin and TDR’s
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