British supermarket group Asda said on Tuesday it would acquire petrol station operator EG Group's UK and Ireland business to create a company with combined revenues of nearly 30 billion pounds ($38 billion).

Asda, Britain's third-largest grocer, and EG are both owned by brothers Zuber and Mohsin Issa and private equity group TDR Capital.

It said it would acquire around 350 petrol stations and over 1,000 food-to-go locations in the deal, which is expected to close in the fourth quarter.

Asda said it planned to invest more than 150 million pounds within the next three years to fully integrate the combined business.

As part of the transaction the shareholders are providing around 450 million pounds of additional equity to fund the transaction, it said.

($1 = 0.7923 pounds) (Reporting by Paul Sandle; Editing by Kate Holton)