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Asda does petrol

Asda does petrol

Billionaire owners buy their own filling station chain

Mohsin and Zuber Issa are among northern England’s most successful business people. Now billionaires, they started their careers with a single petrol station in Bradford. They now own 350 of them, and the Asda supermarket chain to boot. They bought Asda in a highly leveraged transaction, however, and as UK interest rates stay high to counter inflation, the chain is burdened with debts of £6 billion. The brothers’ solution is to buy their own petrol stations, whose brisk cash flow, the thinking goes, will help service Asda’s debt. If this was a straight merger it might be straightforward, but it isn’t. The Issas are loading up with £770 million more debt in high-interest loans to make it happen, as government pressure and competition from Aldi and Lidl shrink their margins. The Telegraph reports that £3.6 billion in loans are due for repayment in February 2026. No doubt there’s a plan.