BLACKBURN'S billionaire Issa brothers—Mohsin and Zuber—are eyeing to take over Caltex Australia.
The duo from Blackburn, known for their rags-to-riches story, are reportedly trying to outbid Canada's Alimentation Couche-Tard, in what is being called an “audacious swoop” over Caltex Australia.
Mohsin and Zuber, through their Euro Garages (EG Group), has been on a “debt-fuelled” expansion spree over the past two years.
They recently took over more than petrol stations and convenience stores from Cumberland Farms and Fastrac in the US, and 540 outlets from Woolworths in Australia.
Overall, the group owns 5,400 sites across Europe, America and Australia, employing more about 35,000 people.
The EG Group has reportedly offered £2billion in cash, along with shares in a new listed company, Ampol, against Couche Tard’s consolidated offer of £4.5 billion.
News about the bid emerged after Caltex filed a statement to the Australian Stock Exchange yesterday (19).
The total value of EG Group’s “complex bid” has not been revealed, but a company spokesperson said the bid was “well-placed”.
If the deal goes through, the group would add 1,900 sites under its umbrella.
The Issa brothers, whose parents had migrated from India to Lancashire in the 1960s to work in a wool mill, launched Euro Garages with a £150,000 site in Bury in 2001.
Today they are Europe's biggest independent fuel retailer, with an annual sales worth £10billion and tie-ups chains such as Sainsbury's, Starbucks, Subway Greggs, Spar, and Burger King.
The EG Group’s rapid growth saw it taking over petrol stations owned by BP, Esso and Shell.
