Mohsin and Zuber Issa

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Mohsin and Zuber Issa
BornMohsin: July 1971
Zuber: June 1972
Blackburn, Lancashire
NationalityBritish-Indian
EducationWitton Park Academy
OccupationEntrepreneurs
Known forOwners of Asda
Co-founders of EG Group

Mohsin Issa CBE and Zuber Issa CBE are British-Indian billionaire brothers and businessmen who founded Euro Garages (later renamed EG Group) in 2001, a Blackburn-based operator of filling stations, convenience stores and food service providers across Europe, the United States and Australia. [1] In 2020, as part of a consortium with TDR Capital, the brothers became majority stakeholders in the British supermarket chain Asda. [2]

Contents

In 2020, the Issas were each appointed Commander of the Order of the British Empire (CBE) in the year's Birthday Honours for services to business and charity. [3] In 2023, the Sunday Times Rich List valued their combined net worth at £5.05 billion, making them the 40th wealthiest family in the UK. [4]

Early lives

Mohsin Issa was born in July 1971, and Zuber Issa in June 1972 in Blackburn, Lancashire in North West England into an Indian Gujarati Muslim family [5] [6] to parents Vali and Zubeda who came to the United Kingdom from Bharuch, Gujarat, India in the 1960s to work in the textile industry, and then ran a petrol pump. [7] They were educated at Witton Park Academy. [8] Their childhood was a modest one, growing up in a terraced house in Blackburn.

Careers

After leaving school, the brothers worked in the clothing industry for a short time. Zuber went on to run a news kiosk in Blackburn called Euro News. [9] In 1993, Mohsin co-founded plastic-packaging firm Europlast alongside older brother Zakir, of which Zuber would become a shareholder in 1998. [10]

EG Group

“When you look at what [the petrol forecourt] business was, kiosked out, Cokes and smokes, you wouldn't buy any food, it would be distress purchase et cetera. We had the vision of actually modernising that, investing in that. It was our vision in addressing multiple missions in one convenient location.”

—Mohsin Issa speaking to the Business and Trade Select Committee on Tuesday 19 December 2023.

Before founding Euro Garages, the Issa brothers took out a lease on a garage, and saved up the money to buy their first petrol station. [11] They co-founded Euro Garages in 2001, with the acquisition of a single petrol station in Bury, Greater Manchester. [12]

Euro Garages expanded as oil majors (such as Esso) offloaded their forecourt sites, with Euro Garages using these acquisitions to expand retail and food convenience offerings. [13] [14]

Prior to the Asda acquisition, Mohsin ran the business day-to-day, whilst Zuber was responsible for strategy and acquisitions. [11]

Asda

In October 2020, Walmart announced an agreement to sell a majority stake in British supermarket chain Asda to a consortium of the Issa brothers and private equity firm TDR Capital. [2] In August 2021, Roger Burnley unexpectedly stepped down as Asda's CEO, with Mohsin operating Asda's day-to-day business going forward. [15]

On 19 July 2023, Mohsin appeared before the Commons' Business and Trade Select Committee, angering committee members, who accused Issa of 'failing to answer questions about the supermarket’s fuel prices, finances and treatment of staff.' [16]

In December 2023, there were initial media reports that Mohsin and Zuber had suffered a falling out, though these reports were criticised by a source close to the brothers. [17] In February 2024, it was reported that Zuber Issa was seeking to sell his 22.5 per cent stake in Asda to focus on other areas of business. [18] It was reported that the equity was worth £500 million. [18]

In March 2024, Mohsin told the BBC that he was carrying out a "reset" at the grocer, before appointing a chief executive to succeed him. He also denied a rift with Zuber. [19]

Other interests

Through their Monte Group company, the Issa brothers are investors in the sports brand Castore. [20] They also own the Stanley House Hotel & Spa in Lancashire. [21]

In 2021, the brothers tried to acquire the fashion retailer Topshop, but lost out to ASOS. [22] In 2022, they attempted to acquire pharmacy chain Boots, but its American owners Walgreens decided not to sell it, and took it off the market. [23] Later in the year, the brothers attempted to acquire McColl's, but lost out to Morrisons. [24] In 2023, the brothers emerged as potential bidders for Subway, however it would end up being sold to Roark Capital Group. [25] Attempts to acquire Caffè Nero in the early 2020s were not successful. [26]

In July 2023, the brothers invested £30 million in HVS, a British zero-emission company that is developing a lorry running on hydrogen fuel cells. [27]

Personal lives

Mohsin Issa's first marriage was to Shamin, with the couple having a son and a daughter. [28] In January 2024, it was reported that Mohsin Issa was in a relationship with an Ernst & Young senior partner, which resulted in Ernst & Young removing themselves as Asda's auditors in July 2023. [29] It was later revealed that the senior partner is Victoria Price, and that the pair first met at an Ernst & Young award ceremony in 2018, though Price never had Asda as a client whilst at Ernst & Young. [30]

Zuber Issa is married to Asma, with the couple having four children. [31]

The brothers invested in a £25 million mansion in Knightsbridge, in Central London in 2020. [32]

Controversy

Mohsin and Zuber came under criticism in 2020 for their tax affairs. [33] [34] along with criticism over safety standards at a company they once co-owned. [35]

The Issas have been planning and building five identical mansions in an exclusive countryside area, on the outskirts of Blackburn, since 2020. These plans have been subjected to complaints from local residents who feel that the buildings are not in keeping with the local area. [36]

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References

  1. ↑ "About Us". EG Group. 22 August 2017. Retrieved 2 March 2018.
  2. 1 2 "Asda bought by billionaire brothers in £6.8bn deal". BBC News . 2 October 2020. Retrieved 2 October 2020.
  3. ↑ "No. 63135". The London Gazette (Supplement). 10 October 2020. p. B10.
  4. ↑ Times, The Sunday (10 July 2023). "Mohsin and Zuber Issa net worth — Sunday Times Rich List 2023". The Times . ISSN   0140-0460 . Retrieved 10 July 2023.
  5. ↑ "Petrol stations owned by Muslim family remove alcohol from shelves". The Express Tribune.
  6. ↑ "UK billionaire brothers' mega mosque plan gets council's nod". Ummid.
  7. ↑ Watts, Robert; McCall, Alastair (7 May 2017). "High-octane rise of brothers' firm shows family value". The Sunday Times . Retrieved 2 March 2018.
  8. ↑ Neate, Rupert (2 October 2020). "New Asda owners Mohsin and Zuber Issa – the Blackburn billionaire brothers". The Guardian. Retrieved 2 October 2020.
  9. ↑ The Billionaire brothers owners of Asda -ISSA Brothers from Lancashire , retrieved 9 January 2023
  10. ↑ "'Appalling' safety at Asda buyers' former company". BBC News. 18 December 2020. Retrieved 9 January 2023.
  11. 1 2 Orton-Jones, Charles (29 November 2010). "Band of brothers: Why sibling-run firms work". Real Business. Retrieved 2 March 2018.
  12. ↑ George, Thomas (2 October 2020). "The billionaire brothers who built an empire from a Bury petrol station and have just bought ASDA for £6.8bn". Manchester Evening News . Retrieved 2 October 2020.
  13. ↑ The Billionaire brothers owners of Asda - ISSA Brothers from Lancashire (Audio, 13'56"). BBC Sounds. 25 April 2021 – via YouTube.
  14. ↑ Frost, Richard (19 January 2016). "Acquisitions drive growth at Euro Garages". Insider Media.
  15. ↑ Jahshan, Elias (6 August 2021). "Asda CEO Roger Burnley resigns earlier than expected after takeover". www.retailgazette.co.uk. Retrieved 8 February 2024.
  16. ↑ "Asda co-owner angers MPs during fuel prices grilling session - Retail Gazette". 24 July 2023. Archived from the original on 24 July 2023. Retrieved 24 July 2023.
  17. ↑ Barr, Luke (16 December 2023). "Asda's billionaire brothers face billions of pounds of debt – and talks of strained ties". The Telegraph. ISSN   0307-1235 . Retrieved 5 February 2024.
  18. 1 2 Cahill, Helen (5 February 2024). "Billionaire Asda owner seeks to sell stake for more than £500m". ISSN   0140-0460 . Retrieved 5 February 2024.
  19. ↑ "Issa brother to step back after 'fixing' Asda". BBC News. 1 March 2024. Retrieved 1 March 2024.
  20. ↑ "Issa brothers onside at Castore". Castore. Retrieved 1 August 2021.
  21. ↑ "EG Group acquires 52 KFC restaurants". The Caterer. 27 September 2021. Retrieved 28 February 2024.
  22. ↑ "Issa brothers miss out on TopShop and Miss Selfridge deal - ALL stores to close". Lancashire Telegraph. Retrieved 9 January 2023.
  23. ↑ "Billionaires Face Off in Final Battle for UK High Street Staple". www.bloomberg.com. Retrieved 10 September 2022.
  24. ↑ Gill, Oliver; Warrington, James (9 May 2022). "Morrisons beats Issa brothers in battle to rescue McColl's". The Telegraph. ISSN   0307-1235 . Retrieved 10 September 2022.
  25. ↑ Maidment, Adam (28 March 2023). "Billionaire Issa brothers 'considering £8bn takeover of sandwich giant Subway'". Manchester Evening News. Retrieved 24 January 2024.
  26. ↑ Vay, Josie Le (14 January 2022). "Bombshell for billionaire Issa brothers' plans to buy Caffé Nero". Manchester Evening News. Retrieved 13 September 2022.
  27. ↑ Editor, Robert Lea, Industrial (9 July 2023). "Billionaire Issa brothers backing hydrogen-powered lorry start-up". The Times . ISSN   0140-0460 . Retrieved 10 July 2023.{{cite news}}: |last= has generic name (help)CS1 maint: multiple names: authors list (link)
  28. ↑ Evans, Peter (2 June 2019). "Petrol station brothers filled with drive" . The Times. Retrieved 4 October 2019.
  29. ↑ Hill, Eloise (28 January 2024). "Asda auditor EY resigns - Retail Gazette". www.retailgazette.co.uk. Retrieved 29 January 2024.
  30. ↑ "Mohsin Issa confirms relationship with ex-EY tax partner after Asda auditor resignation". Yahoo Finance. 2 February 2024. Retrieved 8 February 2024.
  31. ↑ Billionaire Brothers Asda owners - ISSA Brothers from Lancashire | EuroGarages Group| #billionaire , retrieved 8 February 2024
  32. ↑ Ralph, Alex (3 October 2020). "Brothers from 'wrong side of Pennines' who took over Asda" . The Times . ISSN   0140-0460.
  33. ↑ Armstrong, Ashley (5 October 2020). "Asda owners Issa brothers 'paid no tax for two years'" . The Times.
  34. ↑ Armstrong, Ashley (12 October 2020). "Asda's parent company will be based in Jersey tax haven" . The Times.
  35. ↑ "'Appalling' safety at Asda buyers' former company". BBC News. 18 December 2020.
  36. ↑ Jolly, Bradley (6 February 2024). "Asda billionaire brothers infuriate locals with plans for 'monstrous McMansions'". The Mirror. Retrieved 8 February 2024.
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