Supermarket co-owner Mohsen Issa, who is also a co-founder of Easy Group, said the deal would let them offer “Asda’s highly competitive fuel” to even more customers.
The companies expect to make synergy savings of around £100 million from the deal over the next three years through the size of the combined group.
It didn’t announce any job cuts but didn’t rule them out either.
The deal ends months of speculation about the future of the two firms, both owned by the billionaire Issa brothers.
The combined company is expected to be valued at around £10 billion, have revenues of around £30 billion and employ in the region of 170,000 people.
The deal is also a way for Easy Group to help pay down its debts.
The £2.3bn from the sale of Asda will be combined with the $1.4bn (£1.1bn) from a deal in the US.
In total, these payments will help reduce EG’s reported £7 billion debt pile.
Its net leverage will fall, meaning its debt will be more than five times earnings before interest, taxes, depreciation and amortization (EBITDA).
But gmb The union has previously said that part of that debt is at risk on Asda, which already owes around £4.7bn.
There has been speculation of a tie-up between Asda and Easy Group ever since Issa Brothers bought the supermarket chain for £6.8bn in 2020.
They swooped in on Asda after former owner Walmart’s plan to sell it to Sainsbury’s was blocked.
“Throughout my career in retail, one thing has always held true – that meeting the evolving needs of customers is the path to growth.
“This transaction is about accelerating growth by bringing Asda’s legacy to even more communities and driving the growth of its convenience retail business.”
Mohsen Issa said: “ASDA is committed to saving customers valuable time and money with their shopping baskets and on the forecourt.
“The combination of Asda and EG UK&I will be positive news for motorists as we will be able to bring Asda’s highly competitive fuel offering to more customers.”