The Issa brothers are preparing for a potential flotation of their petrol station empire in the United States, with an estimated value of £13 billion. This strategic move represents another significant setback for the London Stock Exchange, as Britain continues to witness the departure of major businesses to American markets.
EG Group, helmed by Mohsin and Zuber Issa, has initiated discussions with major banks regarding a possible listing in 2025. The move could result in a substantial windfall for the brothers and their private equity partner, TDR Capital. The company’s preference for a US listing aligns with its current revenue distribution, as the majority of its earnings now originate from American operations.
The organisation’s journey from a single forecourt in Bury, Greater Manchester, in 2001 to a global enterprise has been marked by debt-fuelled expansion. The brothers’ strategic acquisitions included an £2.2 billion deal with Kroger in 2018, securing 800 convenience stores across America.
Recent corporate restructuring saw EG Group divest most of its British assets to Asda for £2 billion in October 2023. Zuber Issa’s subsequent sale of his 22.5 per cent stake in Asda, while maintaining his EG Group shareholding, sparked speculation about fraternal discord – claims firmly denied by Mohsin Issa in a BBC interview.
The proposed US listing follows a concerning trend for British markets, with numerous FTSE-100 companies, including Ashtead Group, Flutter Entertainment, and Ferguson, choosing to relocate their listings to America. Leading financial institutions including Rothschild, Barclays, Goldman Sachs, JP Morgan, and Morgan Stanley are reportedly positioned to facilitate the flotation.
This strategic shift reflects the growing allure of US markets for British businesses, potentially catalysing further corporate migrations and raising questions about London’s future as a premier financial centre.
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