British petrol station magnates Mohsin and Zuber Issa are considering a possible listing of their £13 billion petrol station empire, EG Group, on a US stock market.
The move would deal another blow to the London Stock Exchange, which has been hit by a string of high-profile companies choosing to go abroad.
Sources suggest that EG Group and its private equity backer, TDR Capital, are exploring a possible listing as early as 2025, with the US market seen as the most attractive thanks to EG’s extensive US operations. The company was founded in 2001 from a single location in Bury, Greater Manchester, and has rapidly expanded through a series of highly leveraged acquisitions, creating thousands of forecourts worldwide.
The Issas acquired 800 convenience stores from US retailer Kroger for $2.2 billion in 2018, making America EC’s most important market. In Britain, much of EG Group’s presence was sold to Asda for £2 billion last year. Zuber Issa subsequently sold his 22.5% stake in Asda and used the proceeds to take ownership of the remaining UK petrol stations and set up a separate company, EG on The Move, although he still holds shares in EG Group and in the board is seated.
While reports of tension between the brothers have been circulating, Mohsin Issa, 53, has refuted rumors of a feud. Despite dwindling British interests – the EG Group still owns the Cooplands bakery chain and a Starbucks franchise – it has built a significant US network in 30 states. Analysts say floating in the US could yield a generous valuation, in line with recent transatlantic trends: Ashtead Group, Flutter Entertainment and Ferguson have all moved their listings to the United States.
Banks mentioned in connection with a potential EG Group IPO include Rothschild, Barclays, Goldman Sachs, JP Morgan and Morgan Stanley, although no final decision has yet been made. EG Group itself declined to comment.