(Bloomberg) --

EG Group is exploring a merger of its petrol forecourts with Asda Group Ltd. to create a business valued at more than £10 billion ($12 billion), according to the The Times.

The Issa brothers and London-based TDR Capital are considering the combination with the supermarket chain to help refinance £7 billion of debt due in 2025, the paper said.

EG’s operating profit will barely cover its interest expenses, which are set to jump by about $120 million to $800 million this year, the Times said, citing Roberto Pozzi, an analyst at the credit-rating agency Moody’s.

The merger would create a business with 581 supermarkets, 700 petrol stations and more than 100 convenience stores. The competition regulator’s view is unclear at this stage, the Times reported. The owners are being advised by bankers at Barclays and Rothschild.

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