Asda-owners the Issa brothers are reportedly considering a merger between Asda and its UK petrol forecourts business.

According to a report by The Times, the merger could create a business worth over £10 billion.

The newspaper said that merger talks are currently being held prior to a “crunch refinancing” at EG Group, which faces £7 billion of debt falling due in two years.

The supermarket and petrol forecourt businesses are jointly owned by the billionaire brothers and UK private equity company TDR Capital.

The owners are expecting to refinance the debt on improved terms though the merger of the companies.

The news comes less than a week after the Competition Markets Authority (CMA) announced it is investigating Asda’s £600 million purchase of 132 Co-op retail sites with attached petrol stations.

The regulator said that it is considering whether the buyout, which finalised in October, has resulted in a lessening of competition within the UK market.

The probe comes six weeks after Asda said it would create 10,000 new roles over the next four years as the retailer plans a nationwide roll out of its new express store concept.

The supermarket plans to open 300 convenience stores by the end of 2026.

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