Billionaire Issa brothers planning £8billion takeover of fast food chain Subway
<?xml encoding=”utf-8″ ??>
Asda owners, the Issa Brothers, are reportedly eyeing up a potential takeover of major fast food chain Subway.
The brothers, Mohsin, 51, and Zuber Issa, 50, are understood to be plotting to acquire the sandwich chain – which has 44,000 restaurants globally – for £8billion.
One source told The Sun that the brothers’ company, EG Group, believe that Subway would be an “ideal fit” for their empire.
A source said: “EG Group have felt for a while that Subway treated them the same way as other franchise partners and their massive growth hadn’t been appreciated.
“So what better way to show who’s boss than owning them.”
Another source told the paper: “It would make good sense.”
The Blackburn-based Issa brothers already have a few Subway stores in some of its more than 6,300 petrol stations across the globe.
This includes 340 stations in the UK.
Subway announced earlier this year that it was looking into the possibility of selling the business.
At the time, the company did not indicate how long the sales process could take or whether there were any interested parties.
It also said it couldn’t confirm if a sale would actually take place.
The family-owned chain also said that it would not be making any further companies about the potential sale going forward.
According to the Wall Street Journal, which first reported the story, a sale of the Subway could value it at more than $10billion (£8.2bn), which is a similar figure to the Issa brother’s reported bid.
The Issa brothers have built quite a name for themselves over the last 20 years after founding the company EG Group, initially called Euro Garages, in 2001.
The brothers expanded very quickly after opening their first petrol station in Bury, Greater Manchester after teaming up with the private equity firm TDR capital.
The brothers have built a name for themselves in the retail and hospitality world having recently purchased well-known chains such as Asda and the fast food chain Leon.
Recently the group has tried to seize the coffee chain Caffe Nero and has reportedly explored a bid for Boots.