Billionaire siblings, the Issa brothers, offload their £367m Italian business arm.
EG Group Shifts Focus to Core Markets and Strengthens Balance Sheet
In a strategic move, EG Group, co-founded by billionaire brothers Mohsin and Zuber Issa, has sold its remaining UK forecourt business and certain foodservice locations for £228m in the autumn of 2023. This sale, along with other divestments, forms part of the company's strategy to focus on core markets and strengthen its balance sheet.
Following the sale, Zuber Issa stepped down from his role as co-chief executive and became a non-executive director. The private equity giant TDR Capital, which already co-owns EG Group, became a more significant shareholder after Zuber Issa sold his shares in Asda.
EG Group's strategy now is to focus on its core markets with the highest growth potential, notably the U.S. and selected European markets. The company aims to streamline its portfolio by exiting less strategic regions, such as Italy and Australia, and concentrating on markets where it can leverage synergies in fuel retail, convenience retail, and foodservice. Emerging areas like electric vehicle (EV) charging infrastructure and digital loyalty programs are also on the agenda for investment.
The company's financial performance has shown improvement since the divestment efforts intensified in early 2023. The underlying EBITDA increased by about 9-10% by mid-2025, reaching £782.7 million by Q2 2025. This EBITDA improvement was mainly driven by growth in the U.S. business and improved fuel margins in Europe. The asset sales have been instrumental in reducing the company’s debt load significantly, improving leverage ratios to about three times earnings, which supports the ability to pursue further strategic investments and prepares the company for an anticipated IPO valued at approximately £13 billion.
However, the decline in sales over the year from $28.3bn to $24.1m was due to the fall in fuel prices and the impact of divestments over the past two years. The transaction is subject to antitrust and other regulatory approvals, with completion expected by the end of 2025.
The acquisition of EG Italia by a consortium aims to generate synergies for the development of the fuel stations network and expand services with a view to energy transition. The EG network, combined with the consortium members' networks, will enhance EG Italia's know-how and skills, inherited from Esso Italiana since 2018.
In summary, EG Group is transitioning from a broad global presence to a more concentrated, financially stable, and growth-focused platform. The risks associated with this transition include overreliance on asset sales, which may limit market share and synergy potential, and the success of the IPO depends on operational improvements and market confidence under new CEO leadership.
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