Billionaire Asda buyers lose Deloitte: Auditor backs out of four year relationship to be replaced by KPMG
Big four accounting firm Deloitte has quit its role as the auditor of EG Group, the petrol stations giant whose billionaire owners are taking over Asda.
EG Group, owned by brothers Mohsin and Zuber Issa, has told bondholders that KPMG had been brought in after Deloitte resigned with immediate effect.
Deloitte had worked on EG Group’s accounts for four years.
EG Group, owned by brothers Mohsin and Zuber Issa, has told bondholders that KPMG had been brought in after Deloitte resigned with immediate effect
The petrol station group, which is jointly owned by the Issa brothers and private equity group TDR, did not tell its backers why the accounting group resigned.
Sources told the Financial Times Deloitte had stepped back because of governance concerns, but did not specify what these might be.
The claims come just days after the self-made billionaire Issa brothers were granted CBEs in the Queen’s Birthdays Honours list for their ‘services to business and charity’.
The Issas and private equity group TDR have been hailed for striking a deal earlier this month to buy Asda for £6.8billion.
The Issas and TDR will own equal stakes in the UK’s third-largest supermarket chain and Wal-Mart will keep a minority holding.
EG Group said in a statement: ‘As in previous years, Deloitte signed a clean audit for EG Group’s 2019 financial statements, and there have been no disagreements on any auditing or accounting matters.
‘We are pleased to be working with KPMG going forward, and remain committed to making continued progress with our internal processes, controls and governance.’