Supermarket chain Asda has agreed to buy the UK and Irish operations of petrol station group EG Group in a £2.3bn deal.

The acquisition has been masterminded by the billionaire Issa brothers who co-own Asda and EG Group, which also operates petrol stations in the US, Australia and parts of Europe.

Zuber Issa said on Tuesday that the deal was “an important strategic step” for EG Group, which is co-owned by private equity firm TDR Capital.

“Following this sale, EG Group will benefit from a significantly strengthened balance sheet,” he said in a statement.

The proceeds from the sale, on top of $1.4bn secured from a recent sale and leaseback deal in the US, will be used to repay EG Group’s debt, the company said.

Asda’s move to acquire EG Group’s UK and Irish businesses comes about two and a half years after the Issa brothers bought the supermarket chain with TDR Capital, in a deal that valued the UK grocer at £6.8bn.

Following the acquisition, the combined group will span 600 supermarkets, 700 petrol forecourts and 100 convenience stores, with 170,000 employees and annual revenues of about £30bn.