Mohsin and Zuber Issa

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. In 2020, as part of a consortium with TDR Capital, the brothers became majority stakeholders in the British supermarket chain Asda.

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. 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.

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 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. They were educated at Witton Park Academy. 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. In 1993, Mohsin co-founded plastic-packaging firm Europlast alongside older brother Zakir, of which Zuber would become a shareholder in 1998.

EG Group

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

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.

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

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. In August 2021, Roger Burnley unexpectedly stepped down as Asda's CEO, with Mohsin operating Asda's day-to-day business going forward.

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.'

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. 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. It was reported that the equity was worth £500 million.

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.

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.

Other interests

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

In 2021, the brothers tried to acquire the fashion retailer Topshop, but lost out to ASOS. 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. Later in the year, the brothers attempted to acquire McColl's, but lost out to Morrisons. In 2023, the brothers emerged as potential bidders for Subway, however it would end up being sold to Roark Capital Group. Attempts to acquire Caffè Nero in the early 2020s were not successful.

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.

Personal lives

Mohsin Issa's first marriage was to Shamin, with the couple having a son and a daughter. 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. 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.

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

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

Controversy

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

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.

References

1. EG Group
2. TDR Capital
3. Caffè Nero
4. Sunni Bohra
5. Castore
6. Witton Park Academy
7. Asda
8. Issa (name)
9. Cooplands
10. Asda Mobile
11. Walmart
12. List of British Muslims
13. List of supermarket chains in the United Kingdom
14. Blackburn
15. 2020 Birthday Honours