Asda sets sights on Sainsbury’s as it buys petrol stations group EG UK

Concerns raised over 770m of new loans and 450m in new funds from Issa brothers and TDR Capital

Asda is poised to acquire 350 petrol forecourts and 1,000 takeaways in the UK and Ireland from its sister business EG Group, in a deal worth 2.27bn, helping the retailer in its ambition of overtaking Sainsbury's to become Britain's second biggest grocer.

The supermarket group's chair, Stuart Rose, said the acquisition would create a powerful consumer champion" that was committed to being a price leader" on fuel and the lowest price of the UK's big four supermarkets on groceries.