STANDING in the fluorescent glare of their first petrol station in Bury two decades ago, few would have predicted that Mohsin and Zuber Issa would transform not just Britain’s forecourts, but its entire retail landscape.
The brothers, who founded the multinational petrol forecourt business EG Group and acquired Asda, Britain’s third largest supermarket, from Walmart, have carved out a legacy that is as much about their relentless drive as it is about their ability to adapt to changing times.
The summer of 2024 marked a turning point in their journey. After decades of building an empire together, the Issa brothers began to chart separate paths, a move that signalled not just a shift in their business strategies but also a recalibration of their personal ambitions.
In June last year, Zuber announced that he was selling his 22.5 per cent stake in Asda to co-owners TDR Capital, leaving Mohsin as the remaining Issa co-owner of the supermarket chain with a 22.5 per cent stake.
TDR Capital invested in Asda alongside the Issa brothers, and together they took majority ownership of the business in June 2021for £6.8 billion. The UK-based private equity firm now holds 67.5 per cent stake in the retailer, while Walmart holds the remaining 10 per cent.
On the same day, EG Group announced the sale of its remaining UK forecourt business and certain food service locations to Zuber for £228 million. The group has sold most of its UK and Ireland business to Asda for £2bn in October 2023.
Zuber stated that he would focus on returning to his entrepreneurial roots, aiming to lead and grow a new UK petrol forecourt and convenience retail business, including food service, under the brand ‘EG on the Move’.
“With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired, and spend more time on my charitable endeavours,” Zuber commented at the time.
“Mohsin and I have realised and surpassed our own expectations and the group is a UK success story on a global stage. I am very proud of what we have built together and look forward to being part of the group’s continued success.”
Mohsin, 53, has been profuse in the praise of his brother, a year his junior. “I would like to pay tribute to Zuber’s effective leadership, incredible contribution, dedication and commitment to EG Group. We embarked on this exciting enterprise journey together knowing no boundaries, moving from one site in Bury to the world class global convenience business that it is today.”
Just months later in September, another surprise: Mohsin relinquished his position as chief executive of Asda, handing control to chairman Lord Stuart Rose. He remains a non-executive board member, while continuing as sole chief executive of EG Group.
The brothers of Gujarati origin co-founded Euro Garages (later EG Group) with a single petrol station. Their innovative concept was revolutionary yet deceptively simple: create ‘forecourt destinations’ where motorists could fuel their vehicles while grabbing food, coffee or groceries.
This model thrived spectacularly, enabling rapid expansion both domestically and internationally, as the brothers acquired thousands of forecourt sites and forged partnerships with major brands like Starbucks, KFC, and Subway.
By 2016, EG Group had formed a strategic partnership with TDR Capital, which provided the financial backing needed for even more aggressive growth. Their ambition reached new heights in 2020 when they orchestrated the acquisition of Asda, catapulting them from forecourt operators to major players in Britain’s fiercely competitive grocery sector.
Today, EG Group stands as a retail colossus with over 5,500 sites across the UK, Ireland, Europe, Australia and the US, employing approximately 38,000 people. Despite its immense scale, the business has faced considerable challenges, particularly regarding debt management. However, in 2023, the group demonstrated remarkable resilience by returning to profitability with a pre-tax profit of £1.4bn amid challenging economic conditions.
The group has used the proceeds from the sale of the UK forecourt business – together with the net proceeds of $1.4bn from the recent sale & lease back transaction in the US and the $43m net proceeds from the non-core US asset disposal – to repay debt, enabling the group to significantly reduce net leverage, in line with the previously announced deleveraging strategy.
The brothers’ financial acumen was further demonstrated in late 2024, when EG Group made significant strides in strengthening its financial position. The company successfully repriced its Euro and USD Term Loans while simultaneously repaying its second-lien facilities – a sophisticated financial manoeuvre that reduced borrowing costs and streamlined debt structure.
This refinancing strategy, coupled with over $400m generated from non-core asset disposals in Q4 2024, showcased the brothers' commitment to long-term financial stability. Such was the improvement in the group's financial outlook that Moody's upgraded EG Group from negative to stable, reflecting growing investor confidence in the business model they pioneered.
“The successful repricing will materially reduce our financing costs, enabling us to invest further in the growth of the business,” Mohsin said. “This transaction is a vote of confidence in EG Group’s strategy and performance from investors.”
EG Group maintains its UK presence through Cooplands bakery and Starbucks franchises, while actively developing its proprietary evpoint brand to deploy EV chargers and alternative fuels across both its network and third-party locations – positioning the company for the post-petroleum future.
Their influence extends beyond business into communities across Britain. As EG Group expanded, it created thousands of jobs, revitalised neglected retail spaces, and introduced international brands to underserved areas. Their philanthropic activities, particularly in their native North West England, have further cemented their status as regional powerhouses.
