The Issa brothers, founders of EG Group, are parting ways in their business ventures.
- Zuber Issa sells his 22.5% stake in Asda to TDR Capital, placing TDR firmly in control.
- Mohsin Issa will assume the role of sole CEO at EG Group.
- Zuber acquires EG’s remaining UK forecourts and some foodservice sites for £228 million.
- Both brothers will stay on the EG Group board, committing to future collaboration though their roles diverge.
The Issa brothers, known for transforming EG Group into one of the North West’s notable business success stories, are now taking separate paths. Zuber Issa has sold his 22.5% stake in Asda to TDR Capital. This move significantly strengthens TDR’s control over Asda, while Mohsin Issa retains his 22.5% stake.
Simultaneously, Mohsin will lead EG Group, headquartered in Blackburn, after executing another substantial deal. Zuber is purchasing EG’s remaining UK forecourts and several standalone foodservice locations for £228 million. Upon the deal’s conclusion, Zuber will step down as co-CEO, awarding the sole CEO role to Mohsin. However, Zuber will maintain a board position at EG Group, focusing on his new forecourt business and charitable efforts.
The Issa brothers have pledged ongoing collaboration, marking a stark contrast from their closely-knit business operations in the past. Starting with a single petrol station in Greater Manchester in 2001, the brothers expanded their company globally, acquiring petrol stations, convenience stores, and restaurants. Their significant milestones include purchasing the Leon chain in 2021 and making a €485 million deal for nearly 300 German petrol stations in 2022. Notably, their £6.8 billion purchase of Asda in 2020, alongside TDR Capital, elevated their profile nationwide.
Mohsin Issa has been under scrutiny, appearing before Parliament’s Business and Trade Select Committee due to EG Group’s debts. He clarified to the BBC in March that there is no rift with his brother, stating they “get on exceptionally well.” Today’s developments illustrate differing business objectives, with both brothers prioritising mutual respect in their public statements. Their joint declaration highlighted their successful 20-year journey and their intention to remain active Board members and shareholders at EG Group.
Retail veteran Lord Stuart Rose, chairman of EG Group, acknowledged Zuber’s exceptional leadership and its role in building one of the UK’s largest private companies. He expressed confidence in Mohsin’s leadership, steering the company towards further success as the sole CEO. Rose also praised EG Group’s significant contributions to local and international markets and its innovative foodservice model.
Meanwhile, Zuber Issa emphasized that following his Asda share sale, his focus would shift towards managing the newly acquired UK forecourt sites and his charitable activities. Zuber expressed confidence in Asda’s growth under Mohsin and TDR’s stewardship, with TDR’s managing partners also articulating a robust growth strategy for Asda.
EG Group’s recent first-quarter results showcased a 9% increase in underlying EBITDA, highlighting standout performances in the US and Europe. The group continues its deleveraging efforts, including the sale of 216 KFC franchise restaurants to Yum! Brands’ KFC Division and divesting its remaining UK forecourts to Zuber. The £228 million from Zuber will be used to repay debt and bolster EG’s balance sheet. EG Group remains committed to further debt reduction, aiming for a stable long-term financial structure.
Despite parting ways in their business pursuits, the Issa brothers remain influential figures in the North West business community.
