The news confirms a report by Sky News City editor Mark Kleinman last week, which said the"finishing touches" were being put on the deal.
The combination of Asda and EG UK will create a behemoth with 170,000 employees, and the group will operate nearly 600 supermarkets, 700 petrol forecourts and 100 convenience stores. Stuart Rose, Chair of Asda, said:"Asda's acquisition of EG UK and Ireland will create a consumer champion like the UK has never seen. Throughout my career in retail - one thing has always been true, that meeting the evolving needs of customers is the route to growth.
"This transaction is all about driving growth by bringing Asda's heritage in value to even more communities and accelerating the growth of its convenience retail business."