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Mohsin and Zuber Issa

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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 October 2020, as part of a consortium with TDR Capital, the brothers became majority stakeholders in the British supermarket chain Asda.[2] From August 2021 to September 2024, Mohsin served as Asda's chief executive.[3]

Mohsin and Zuber Issa
BornMohsin: July 1971
Zuber: June 1972
Blackburn, Lancashire
NationalityBritish
EducationWitton Park Academy
OccupationEntrepreneurs
Known for

Since September 2024, Mohsin Issa is the sole chief executive of EG Group, and a minority owner and non-executive director of Asda.[4] Zuber Issa owns and runs his separate business, EG On the Move, is a non-executive director of EG Group, and no longer holds ownership in Asda after selling his stake to TDR Capital.[5] Both brothers retain their ownership stakes in EG Group.[6]

Early lives

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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[7][8] 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 station.[9] They were educated at Witton Park Academy.[10] Their childhood was a modest one, growing up in a terraced house in Blackburn.

Careers

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After leaving school, the brothers worked in the clothing industry for a short time. In 1988/90, Zuber, aged around 17 or 18, purchased a news kiosk in Preston called Euro News, which he later expanded into a newsagent chain in busy mall locations in the North-West of England.[11][12] In 1993, Mohsin co-founded the plastic-packaging firm Europlast alongside older brother Zakir, of which Zuber would become a shareholder in 1998.[13]

Euro Garages / EG Group

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Further information: EG Group and EG On the Move

“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.[14] They co-founded Euro Garages in 2001, with the acquisition of a single petrol station in Bury, Greater Manchester.[15]

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.[16][17]

Prior to the Asda acquisition, Mohsin ran the business day-to-day, whilst Zuber was responsible for strategy and acquisitions.[14]

In June 2024, it was reported that Zuber was looking to step down from being co-executive officer of EG Group to focus on his separate EG On the Move business.[18]

Asda

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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 chief executive, with Mohsin operating Asda's day-to-day business going forward.[19]

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.'[20]

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.[21] 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.[22] It was reported that the equity was worth £500 million.[22]

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.[23]

In June 2024, Zuber Issa announced he will sell his 22.5% stake in Asda to TDR Capital which would make them the majority owner, controlling 67.5% of the company in the third quarter of 2024.[24]

In September 2024, it was announced that Mohsin Issa would step-down as Asda's chief executive, with Lord Stuart Rose and TDR Capital's Rob Hattrell taking over Mohsin's responsibilities.[25]

Other interests

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Through their Monte Group company, the Issa brothers are investors in the sports brand Castore.[26] They also own the Stanley House Hotel & Spa in Lancashire.[27] There is also a development owned on Frontier Park in East Lancashire.[28]

In 2021, the brothers tried to acquire the fashion retailer Topshop, but lost out to ASOS.[29] 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.[30] In 2023, the brothers emerged as potential bidders for Subway, however it would end up being sold to Roark Capital Group.[31] Attempts to acquire Caffè Nero in the early 2020s were not successful.[32]

Since April 2022, Zuber Issa has independently operated a standalone supermarket in Blackburn, called Euro Grocers.[33]

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.[34]

In October 2024, Mohsin invested £10 million in Applied Nutrition, as it prepared to go public on the London Stock Exchange.[35]

In November 2024, it was reported that Mohsin and his partner Victoria Price had launched a firm called Boulder Investco, a private investment fund at backing fast-growing UK start-ups, including Manchester based second-hand clothing website GoThrift.[36]

Honours

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In June 2018, the brothers received Ernst & Young's 'Entrepreneur of the Year' award.[37] In October 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.[38]

Charity

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Mohsin and Zuber established the Issa Foundation in March 2016.[39] In December 2020, their foundation revealed plans to build a mosque in Blackburn on the site of the former Westholme Nursery School; these plans were granted permission in March 2021.[40][41] In August 2024, the Issa Foundation was hit with enforcement action at the former St. Mary's College building in Blackburn surrounding complaints of loud noise.[42]

Personal lives

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Mohsin Issa's first marriage was to Shamin, with the couple having a son and a daughter.[43] In January 2024, it was reported that Mohsin Issa was in a relationship with an Ernst & Young partner, which resulted in Ernst & Young removing themselves as Asda's auditors in July 2023.[44] It was later revealed that the partner is Victoria Price, and that the pair first met at an Ernst & Young award ceremony in June 2018, though Price never had Asda as a client.[45]

Zuber Issa is married to Asma, with the couple having four children.[46]

In November 2017, the brothers invested in a £25 million mansion in Knightsbridge, in Central London.[47] In May 2018, it was reported the brothers were planning to construct five identical mansions on Billinge End Road, an exclusive countryside area on the outskirts of Blackburn. This development required the demolition of eight existing homes and a tennis court.[48] The project, dubbed "McMansions" by the local press, sparked complaints from residents who felt the new buildings were out of place and not in-keeping with the local area.[49]

In July 2023, the Sunday Times Rich List valued their combined net worth at £5.05 billion, making them the 40th wealthiest family in the UK.[50]

Controversy

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In June 2012, whilst Mohsin and Zuber were both Europlast company directors, a worker lost part of his middle finger whilst cleaning a bubblewrap machine at Europlast's plant; the plant had previously been cautioned by the Health and Safety Executive in September 2009 and July 2011 for its health and safety practices.[51] This story was re-established by the media in October 2020 when it was announced the brothers would be majority stakeholders in Asda.[52] Also in October 2020, Mohsin and Zuber came under criticism from the media who were examining their tax affairs.[53][54]

In October 2022, the brothers faced criticism for borrowing tens of millions interest-free from EG Group to buy two private jets.[55] In May 2024, the brothers borrowed an additional £7 million from EG Group to cover private jets.[56]

References

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  1. ^ "About Us". EG Group. 22 August 2017. Retrieved 2 March 2018.
  2. ^ a b "Asda bought by billionaire brothers in £6.8bn deal". BBC News. 2 October 2020. Retrieved 2 October 2020.
  3. ^ "Asda entices new boss with £10m pay package". Yahoo Finance. 9 June 2024. Retrieved 20 August 2024.
  4. ^ "Blackburn Issa brother to step down from running Asda supermarket chain". Lancashire Telegraph. 18 September 2024. ISSN 0307-1235. Retrieved 18 September 2024.
  5. ^ "Zuber Issa to lead new venture as he steps down from EG Group". Asian Image. 18 September 2024. Retrieved 18 September 2024.
  6. ^ "Blackburn Issa brother to step down from running Asda supermarket chain". Yahoo News. 18 September 2024. Retrieved 18 September 2024.
  7. ^ "Petrol stations owned by Muslim family remove alcohol from shelves". The Express Tribune.
  8. ^ "UK billionaire brothers' mega mosque plan gets council's nod". Ummid.
  9. ^ Watts, Robert; McCall, Alastair (7 May 2017). "High-octane rise of brothers' firm shows family value". The Sunday Times. Retrieved 2 March 2018.
  10. ^ Neate, Rupert (2 October 2020). "New Asda owners Mohsin and Zuber Issa – the Blackburn billionaire brothers". The Guardian. Retrieved 2 October 2020.
  11. ^ Corporate, Asda (1 September 2024). "Zuber Issa CBE". Asda Corporate. Retrieved 1 September 2024.
  12. ^ The Billionaire brothers owners of Asda -ISSA Brothers from Lancashire, 14 August 2022, retrieved 9 January 2023
  13. ^ "'Appalling' safety at Asda buyers' former company". BBC News. 18 December 2020. Retrieved 9 January 2023.
  14. ^ a b Orton-Jones, Charles (29 November 2010). "Band of brothers: Why sibling-run firms work". Real Business. Retrieved 2 March 2018.
  15. ^ 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.
  16. ^ The Billionaire brothers owners of Asda - ISSA Brothers from Lancashire (Audio, 13'56"). BBC Sounds. 25 April 2021 – via YouTube.
  17. ^ Frost, Richard (19 January 2016). "Acquisitions drive growth at Euro Garages". Insider Media.
  18. ^ "Blackburn Issa brothers to split as Asda share sale announced". BBC News. 8 June 2024. Retrieved 31 August 2024.
  19. ^ Jahshan, Elias (6 August 2021). "Asda CEO Roger Burnley resigns earlier than expected after takeover". www.retailgazette.co.uk. Retrieved 8 February 2024.
  20. ^ "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.
  21. ^ 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.
  22. ^ a b Cahill, Helen (5 February 2024). "Billionaire Asda owner seeks to sell stake for more than £500m". The Times. ISSN 0140-0460. Retrieved 5 February 2024.
  23. ^ "Issa brother to step back after 'fixing' Asda". BBC News. 1 March 2024. Retrieved 1 March 2024.
  24. ^ "Asda co-owner Zuber Issa sells his stake to private equity company TDR Capital". Sky News. 7 June 2024. Retrieved 7 June 2024.
  25. ^ Denton, Jane (18 September 2024). "Lord Stuart Rose to lead Asda as co-owner Mohsin Issa steps back". This is Money. Retrieved 18 September 2024.
  26. ^ "Issa brothers onside at Castore". Castore. Retrieved 1 August 2021.
  27. ^ "EG Group acquires 52 KFC restaurants". The Caterer. 27 September 2021. Retrieved 28 February 2024.
  28. ^ "EXCLUSIVE: First Hilton hotel for East Lancs announced". Lancashire Telegraph. 7 January 2019. ISSN 0307-1235. Retrieved 23 August 2024.
  29. ^ "Issa brothers miss out on TopShop and Miss Selfridge deal - ALL stores to close". Lancashire Telegraph. February 2021. Retrieved 9 January 2023.
  30. ^ "Billionaires Face Off in Final Battle for UK High Street Staple". Bloomberg. 13 May 2022. Retrieved 10 September 2022.
  31. ^ Maidment, Adam (28 March 2023). "Billionaire Issa brothers 'considering £8bn takeover of sandwich giant Subway'". Manchester Evening News. Retrieved 24 January 2024.
  32. ^ Vay, Josie Le (14 January 2022). "Bombshell for billionaire Issa brothers' plans to buy Caffé Nero". Manchester Evening News. Retrieved 13 September 2022.
  33. ^ "Shoppers converge on first Issa brothers Euro Grocers store to open in UK". Asian Image. 1 April 2022. Retrieved 23 August 2024.
  34. ^ 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)
  35. ^ Young, Jamie (16 October 2024). "Former Asda boss Mohsin Issa invests £10m in sports supplement firm ahead of London IPO". Business Matters. Retrieved 19 October 2024.
  36. ^ Goldfingle, Gemma (3 November 2024). "Asda co-owner Issa backs Vinted rival through new start-up investment fund - Retail Gazette". Retrieved 14 November 2024.
  37. ^ "Blackburn brothers land prestigious prize | TheBusinessDesk.com". North West. 29 June 2018. Retrieved 31 August 2024.
  38. ^ "No. 63135". The London Gazette (Supplement). 10 October 2020. p. B10.
  39. ^ "ISSA FOUNDATION - Charity 1166025". register-of-charities.charitycommission.gov.uk. Retrieved 3 September 2024.
  40. ^ "Billionaire Issa brothers: £5m 'landmark' Blackburn mosque approved". BBC News. 19 March 2021. Retrieved 3 September 2024.
  41. ^ "New dome placed on top of £5m landmark Issa Foundation mosque". Lancashire Telegraph. 2 September 2024. ISSN 0307-1235. Retrieved 3 September 2024.
  42. ^ Macpherson, Jon (15 August 2024). "Issa brothers' charity hit with enforcement action over events at former college". Lancs Live. Retrieved 3 September 2024.
  43. ^ Evans, Peter (2 June 2019). "Petrol station brothers filled with drive". The Times. Retrieved 4 October 2019.
  44. ^ Hill, Eloise (28 January 2024). "Asda auditor EY resigns - Retail Gazette". www.retailgazette.co.uk. Retrieved 29 January 2024.
  45. ^ "Mohsin Issa confirms relationship with ex-EY tax partner after Asda auditor resignation". Yahoo Finance. 2 February 2024. Retrieved 8 February 2024.
  46. ^ Billionaire Brothers Asda owners - ISSA Brothers from Lancashire | EuroGarages Group| #billionaire, 14 August 2022, retrieved 8 February 2024
  47. ^ Ralph, Alex (3 October 2020). "Brothers from 'wrong side of Pennines' who took over Asda". The Times. ISSN 0140-0460.
  48. ^ "Anger over Euro Garages brothers' plans to build 5 identical 'McMansions' in Blackburn". Lancashire Telegraph. 29 May 2018. ISSN 0307-1235. Retrieved 31 August 2024.
  49. ^ Jolly, Bradley (6 February 2024). "Asda billionaire brothers infuriate locals with plans for 'monstrous McMansions'". The Mirror. Retrieved 8 February 2024.
  50. ^ 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.
  51. ^ Stuart-Turner, Richard (4 July 2014). "Packaging firm prosecuted after worker loses part of finger". Printweek. Retrieved 31 August 2024.
  52. ^ "'Appalling' safety at Asda buyers' former company". BBC News. 18 December 2020. Retrieved 31 August 2024.
  53. ^ Armstrong, Ashley (5 October 2020). "Asda owners Issa brothers 'paid no tax for two years'". The Times.
  54. ^ Armstrong, Ashley (12 October 2020). "Asda's parent company will be based in Jersey tax haven". The Times.
  55. ^ "Subscribe to read". www.ft.com. Retrieved 3 September 2024. {{cite web}}: Cite uses generic title (help)
  56. ^ Hill, Eloise (3 May 2024). "Issa brothers borrow £7m more from EG Group to cover private jets - Retail Gazette". Retrieved 3 September 2024.
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