Deloitte resigns from EG Group audit role following Asda acquisition

UK-based petrol station group EG Group’s auditor Deloitte has resigned from its role after EG Group’s owners, the Issa brothers and private equity group TDR, confirmed a £6.8bn deal to buy Asda from Walmart.

By Jessica Paige

UK-based petrol station group EG Group’s auditor Deloitte has resigned from its role after EG Group’s owners, the Issa brothers and private equity group TDR, confirmed a £6.8bn deal to buy Asda from Walmart.

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Deloitte, which is one of the “big four” accounting firms, has allegedly resigned over concerns of the group’s governance and internal controls. A source involved told news-source the Financial Times that the resignation was “triggered by concerns at Deloitte that EG Group’s controls had not improved in line with its growth”.

EG Group has informed its bondholders this week that KPMG has been appointed as its new auditor with immediate effect.

EG Group told Financial Times: “As in previous years, Deloitte signed a clean audit for EG Group’s 2019 financial statements, and there have been no disagreements on any auditing or accounting matters. We are pleased to be working with KPMG going forward, and remain committed to making continued progress with our internal processes, controls and governance.”

Deloitte and KPMG have declined to comment.

Issa Brothers and TDR Capital to acquire Asda

Earlier this month, the Issa Brothers and TDR Capital agreed to acquire Asda for £6.8bn.

As part of this deal, the brothers and TDR Capital will have majority ownership of Asda with equal shareholdings. Walmart will continue to hold an equity investment in Asda.

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.