Billionaire Asda buyers lose Deloitte: Auditor drops four-year relationship to be replaced by KPMG
The large accounting firm Deloitte has stepped down as auditor of the EG group, the gas station giant whose billionaire owners are taking over Asda.
EG Group, owned by brothers Mohsin and Zuber Issa, told bondholders that KPMG was brought in after Deloitte resigned with immediate effect.
Deloitte had worked on EG Group accounts for four years.
EG Group, owned by brothers Mohsin and Zuber Issa, told bondholders that KPMG was recruited after Deloitte resigned with immediate effect
The gas station group, jointly owned by the Issa brothers and private equity group TDR, has not explained to its backers why the accounting group has resigned.
Sources told the Financial Times that Deloitte took a step back due to governance issues, but did not say what it was.
The complaints come just days after billionaire Issa brothers were awarded CBEs in the Queen’s Birthday Honors List for their ‘service to business and charity’.
The Issas and private equity group TDR were hailed for reaching a deal earlier this month to buy Asda for £ 6.8bn.
Les Issas and TDR will hold equal stakes in the UK’s third-largest supermarket chain and Wal-Mart will retain a minority stake.
EG Group said in a statement: “As in previous years, Deloitte has signed a clean audit for EG Group’s 2019 financial statements, and there has been no disagreement on audit or accounting matters.
“We are delighted to be working with KPMG going forward and remain committed to continuing to make progress in our internal processes, controls and governance.