Morrisons nears £2.5bn petrol forecourt sale

23rd January 2024 | Jack Oliver

Morrisons is close to agreeing a £2.5bn sale of its petrol station estate to forecourt company Motor Fuel Group (MFG).

The deal – which was first reported in September – could be completed within the coming weeks, Sky News reports.

MFG and Morrisons are both majority-owned by American buyout firm Clayton Dubilier & Rice (CD&R), with talks between them now on the verge of a formal agreement.

A source told Sky News a deal could be announced as soon as early February. Insiders said the deal could be used to pay off part of Morrisons £5.7bn debt pile.

The funds could also be used to strengthen the supermarket retailer’s wholesale and convenience offerings.

Morrisons currently operates around 340 petrol forecourt sites, while another 150 could be added as the retailer looks to expand its electric vehicle charging network.

CD&R’s takeover of Morrisons in 2021 was scrutinised by the Competition and Markets Authority (CMA) due to the group’s ownership of MFG. The CMA ruled that the sale could go ahead if MFG agreed to sell 87 of its petrol forecourts.

In a similar deal last year, Asda acquired petrol forecourt group EG Group’s UK and Ireland business for £2.27bn. The deal was also scrutinised by the CMA.


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