EG Group has appointed KPMG as its auditors after Deloitte resigned from the role due to “concerns over its governance and internal controls’’, according to sources close to the matter who spoke with the Financial Times.
The UK petrol station company’s billionaire owners recently agreed to a deal to acquire a majority stake in supermarket chain Asda for £6.8bn.
The group, which owns nearly 6,000 petrol stations and reported over €20bn (£18bn) in revenue last year, did not reveal the reason behind Deloitte’s resignation.
Sources close to the Financial Times cited governance concerns, with one saying the resignation was triggered by Deloitte’s concerns that EG Group’s controls had “not improved in line with its group”.
In a statement, EG Group said: “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.”
KPMG and Deloitte declined to comment.