EG Group sizes up £8b Subway takeover deal

29 March 2023 by
EG Group sizes up £8b Subway takeover deal

The billionaire owners of Leon and Asda are said to be planning an £8b takeover of Subway.

The Blackburn-based Issa brothers, who are behind petrol station forecourt operator EG Group, are considering a bid for the sandwich chain, according to the Sun.

EG Group declined to comment on the reports, but the company already works with Subway and has several the brand's restaurants operating within its petrol station business, which has 340 sites in the UK.

A source told the Sun the deal would "make good sense" and would be a way to "show [Subway] who's boss".

Subway, which is one of the world's largest restaurant brands, confirmed it was exploring a possible sale in February. The sandwich chain is still owned by its founding families and has almost 37,000 global restaurants and 2,000 sites in the UK.

EG Group has been bullish in its expansion into the hospitality market and bought restaurant chain Leon, bakery group Cooplands and a portfolio of 52 franchised KFC restaurants in 2021.

The company made an unsuccessful bid to take over Caffe Nero during the same year.

Image: Tupungato / Shutterstock

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