- Wednesday, May 08, 2024
Ashley Dalton believes the proposed deal is ‘debt-laden’ and not in the interests of her constituents or the country
By: Bill Jacobs
A LANCASHIRE Labour MP is asking for the competition regulator to investigate Asda’s takeover of the Blackburn-based EG Group’s UK and Ireland business.
Ashley Dalton believes the proposed deal is ‘debt-laden’ and not in the interests of her constituents or the country.
But EG group and Asda, both owned by Blackburn’s billionaire Issa brothers Mohsin and Zuber, dispute her claims.
West Lancashire MP Dalton has written to Kemi Badenoch, secretary of state for business and trade, urging her to ensure the Competition and Markets Authority (CMA) intervenes. Her letter claims that Asda’s debts are already thought to be £4.7 billion and any deal with EG Group could add £7 billion to the total.
Dalton’s letter follows Asda workers GMB trade union writing to Badenoch in April.
She said: “The merger looks set to hugely increase the debt burden on Asda, which will threaten jobs as well as the future of the company.
“As one of the largest private sector employers in the UK, the future sustainability of Asda is important to my constituents that work there. Their livelihoods rely on it. Not only that but many of my constituents do a weekly shop at the store.
“There are serious concerns about the impact for fuel prices with one company having a potential monopoly on access to our petrol pumps.”
An Asda spokesman said: “Asda has acquired EG Group’s UK and Ireland business. It is not merging with EG Group.
“Asda’s net debt post-acquisition will be circa £5bn. “Although Asda have common shareholders in the Issa brothers and TDR Capital – the two companies operate independently. “The £7bn EG Group refinancing will have no impact whatsoever on Asda.
“Asda is the price leader in the fuel market. This position will remain unchanged following the acquisition which means many more motorists will benefit from lower prices at the pumps when the EG UK forecourt sites are converted to Asda petrol stations.
“Asda expects the transaction will be a net jobs creator for both Asda and the EG business.” EG group sources made clear that, as announced in its latest financial results, the company would remain headquartered in nine countries in three continents and that its financial restructuring would reduce the company’s net debt significantly from £7,660million in March to £4,201m after the Asda deal. (Local Democracy Reporting Service)
