EG Group appoints KPMG as auditor after Deloitte's exit

(Reuters) - British accounting firm KPMG has been appointed as the auditor of petrol station operator EG Group after the resignation of Deloitte.

"We are pleased to be working with KPMG going forward, and remain committed to making continued progress with our internal processes, controls and governance," EG Group said in an emailed statement to Reuters.

The Financial Times newspaper had reported earlier on Wednesday that Deloitte had resigned as auditor of EG Group because of concerns over its governance and internal controls.

Deloitte did not immediately respond to a request for comment outside regular business hours. KPMG declined to comment when asked about the reasons for the development.

The change of auditors comes days after EG's billionaire owners, the Issa brothers, bought British supermarket chain Asda along with private equity group TDR in an $8.8 billion (6.7 billion pounds) deal.

EG Group informed its bondholders in a private notice this week that KPMG had been appointed as its auditor after Deloitte resigned, according to the Financial Times.

The resignation was triggered by concerns at Deloitte that EG Group's controls had not improved in line with its growth, the report added.

"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," EG Group said in its statement.

(This story corrects the deal value to $8.8 billion, not $2.8 billion in the 5th paragraph)

(Reporting by Aishwarya Nair and Kanishka Singh; Editing by Marguerita Choy)