LONDON, Oct 31 (Reuters) – Asda, Britain’s third biggest supermarket group, said on Tuesday it has completed the acquisition of the majority of EG Group’s UK & Ireland business for an enterprise value of 2.07 billion pounds ($2.52 billion).

EG Group, a petrol forecourt operator and retailer, and Asda are both owned by brothers Zuber and Mohsin Issa and private equity group TDR Capital.

The deal, creating a group with combined revenue of nearly 28 billion pounds, was announced in May, when the value was put at 2.27 billion pounds. The revised price reflects adjustments agreed between the two parties.

Asda’s strategy is to boost its convenience store presence by rolling out Asda Express stores across EG’s 356 UK sites, part of a long-term plan to overtake Sainsbury’s (SBRY.L) and become the country’s second largest supermarket group.

Asda, which is chaired by Stuart Rose, the former boss of Marks & Spencer, said the recruitment process for a permanent chief executive was ongoing.

Monthly industry data has consistently shown market leader Tesco (TSCO.L), Sainsbury’s, discounters Aldi and Lidl, and Marks & Spencer (MKS.L) performing robustly, with the privately owned and highly leveraged Asda and Morrisons trailing.

EG Group said proceeds from the deal will be used to repay debt, reducing net leverage and enabling $3.2 billion of loans to be extended to February 2028. It plans to focus on international growth.

($1 = 0.8203 pounds)

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