Petrol forecourts giant EG Group fires up plan for $9bn US float

The petrol forecourts giant founded in Blackburn by brothers Mohsin and Zuber Issa will next week kick off formal plans for a $9bn (£6.7bn) US stock market listing.

Sky News has learnt that EG Group, about 25% of which is owned by each of the brothers, will hold a beauty parade of banks in London ahead of a flotation expected to take place this year. Banking sources said Barclays, Bank of America, Goldman Sachs, JP Morgan and Morgan Stanley were all likely to take part in next week's selection process.

EG Group has become one of the world's largest fuel retailing multinationals, expanding its foodservice offering and generating significant profits. The company, which may choose to list in New York under the name Cumberland Farms, is currently chaired by Lord Rose, the former Marks & Spencer and Asda chairman.

EG Group is roughly 50pc-owned by TDR Capital, the London-based private equity firm which also owns a controlling stake in Asda. Under TDR's ownership, EG Group has recruited an experienced executive leadership team led by Russell Colaco.

Mr Colaco is based in the US, which is now the company's biggest single market. Its global headquarters is shifting to Charlotte, North Carolina, and while the company was founded in Britain, bankers believe a US listing is more logical than a London flotation.

In total, EG Group employs about 33,000 people and operates roughly 4,300 sites. It serves 1 billion customers every year.

In recent years, EG has substantially reduced its borrowings by selling assets, including offloading the majority of its UK sites to Asda. It continues to trade in Britain from about 150 Starbucks-branded outlets, with these also potentially changing hands.

The group has also sold its operations in Italy, while the disposal of its Australian unit is going through competition clearance. One banker said that after taking the disposals into account, it was likely to be valued at between $8bn and $9bn.

An EG spokesman declined to comment..