Asda - comment
The ASDA/EG UK group tie-up, looks likely to be structured as a purchase of EG’s UK and Irish forecourt business. The deal will require CMA approval, and the regulator will almost certainly demand some asset disposals. The rumoured equity cheque is £3bn, so the multiple being paid is around 12x pre-synergies. Apollo is providing a £500m loan facility, but how the remaining £2.5bn will be funded is not yet clear. Leverage at ASDA will rise to 6.4x from 5.3x before any synergies. The details are scant, but it does not look like a change of control event at EG. Leverage on EG's remaining International business will fall to c5.4x.