Blackburn loses Issa empire as brothers move EG Group to US

ASIAN entrepreneurs Mohsin and Zuber Issa are moving the headquarters of their global forecourt company, EG Group, from Blackburn to the US in preparation for a major stock market listing in New York.

The firm confirmed that its main office will relocate to Charlotte, North Carolina, while a new base in Bolton, Greater Manchester, will handle its remaining UK operations, the Telegraph reported. The change brings an end to almost 25 years of the company being run from Blackburn.

According to the BBC, Blackburn will retain about 300 jobs, less than half of the current 700 staff.

The move is seen as a milestone for the Issa brothers, who rose from running a small family shop to building one of the world’s largest petrol station businesses.

Despite the shift overseas, the family has continued to invest in Blackburn, with projects including a mosque, luxury homes near their childhood area of Brookhouse, and plans for one of the country’s biggest cemeteries.

Quesir Mahmood, Lancashire County council’s cabinet member for economic development, said, “While this represents a change for the company, our understanding is Blackburn will remain a key base for EG Group, with around 300 staff continuing to work from the borough. This is a significant and ongoing commitment to our borough and one we greatly value.”

However, Conservative councillor Paul Marrow warned the decision could leave the modern building underused. He said, “This is a massive blow to Blackburn. EG Group has been a flagship business headquartered here for many years, and it is particularly sad to see such a reduction in its presence.”

EG Group is preparing for a $13 billion (£9.7bn) flotation on the New York Stock Exchange. The US has become its most important market, generating most of its income.

The company no longer runs any petrol stations in Britain. Last year, Zuber separated its remaining forecourts into a new venture, EG On The Move, which continues to operate from Blackburn.

At present, the brothers each own 25 per cent of EG Group, while private equity firm TDR Capital controls the remaining half. TDR is also the main backer of supermarket chain Asda, which the Issas bought into with the firm in 2021.

EG said its Bolton office would help the company “maintain roots in the north-west” while reflecting its smaller UK and European presence. It did not confirm if the shift would affect jobs.

Earlier this year, Mohsin stepped down as chief executive, handing over the role to former finance chief Russell Colaco. Both brothers are understood to still live locally and remain connected to the community.

Reports have suggested that Zuber had preferred selling the US arm, valued at around $5bn (£3.7bn), instead of pursuing a public listing.

The company, founded as Euro Garages, grew rapidly after acquiring fuel sites from brands such as Esso. A merger with the European Forecourt Retail Group in 2016, backed by TDR, helped it become a global player and later expand aggressively in the US.

That growth relied heavily on cheap borrowing during the years of low interest rates. Rising costs after the pandemic forced EG to cut back and sell assets to reduce debt.