Issa brother set to buy EG Group assets from sibling amidst rift rumours

Zuber Issa will buy his brother Mohsin out of his shares of EG Group in an attempt to help alleviate some of the billionaire brothers’ debts.

EG Group, formed by the Blackburn brothers back in 2001, has gone on to become a petrol station empire with locations across Europe, the United States and Australia.

The growth of their business even allowed the brothers to become majority stake holders of grocery giant Asda following a £6.8bn deal in 2021.

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Yet their Asda reign has sparked criticism in recent times due to the takeover being debt-ridden and there has also been rumours of a rift between the brothers after Mohsin’s marriage broke down.

Now, as reported in The Times, Zuber is set to buy his brother’s EG Group assets in a bid to disentangle their fortunes.

Details of the potential deal were laid out to investors earlier this week, who were told that EG Group is in “active discussions with Zuber Issa regarding the sale” of UK assets.

This news comes after we reported that Zuber was attempting to sell his 22.5% stake in Asda, Britain’s third-largest supermarket controlled by Mohsin.

Sources close to the discussions said Zuber had approached buyout specialists and indicated a desire to focus increasingly on EG Group.

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In a recent interview with the BBC, Mohsin came out to claim that him and Zuber speak daily and get on “exceptionally well” as he denied any talk about a potential rift.

However, the latest development marks a growing split between the billionaire brothers, who are backed by private equity giant TDR Capital.

A presentation seen by The Telegraph confirmed that EG Group will use any proceeds from a sale to Zuber to pay down its $6bn (£4.7bn) debt pile, as bosses said they were looking at “tidying up our estate”.

Investors were told in a private call that EG Group – which is co-owned by the Issas and TDR – will slash its investment to $90m (£71m) this year, down from $243m in 2023 and $387m in 2022.

The potential changes at EG Group come as Mohsin, who remains on the board at the business, embarks on a new phase in his personal life.

You can read more about the ongoing rift between the two Issa brothers here.