Morrisons sells 337 petrol forecourts in £2.5bn deal
Morrisons has reached an agreement with Motor Fuel Group (MFG) for a £2.5bn deal which will see MFG acquire 337 of the supermarket retailer’s petrol forecourts and over 400 associated sites.
Under the terms of the deal, Morrisons will take a minority stake of approximately 20% in MFG and the two groups will enter into commercial and supply agreements.
The two groups said that the benefits of the new deal include:
- A commitment to supermarket fuel pricing across Morrisons’ estate, with value-for-money fuel remaining on offer at the forecourts, which will remain under the Morrisons brand
- The installation of Ultra-Rapid electric vehicle (EV) charging across the acquired sites
- Within the first five years of the deal, MFG is targeting the installation of 800 Ultra-Rapid 150kW EV chargers
- Investment into expanding and improving the convenience retail proposition, with a focus on enhancing the retail environment, food-to-go, and valeting facilities for customers
- Morrisons will continue to supply food and groceries to 337 Morrisons petrol forecourts, with the opportunity to expand its supply into the MFG estate over the medium term
Morrisons said the proceeds of the sale will fund further investment in its grocery and food-making businesses, as well as significantly strengthening the business’s capital structure.
Rami Baitiéh, CEO of Morrisons, said: “As the needs of the customer continue to evolve, Morrisons and MFG’s partnership will see us combine our respective expertise and resources to deliver the best value for customers at the pump, in our convenience stores and in our supermarkets. It means Morrisons customers will continue to see a competitive and attractive forecourt offering, including expanded access to EV charging, while also benefitting from greater focus on investment in Morrisons’ core food business. We are delighted to have such a strong partner in MFG and look forward to the opportunities a combined MFG and Morrisons forecourt offering will provide.”
MFG and Morrisons are both majority-owned by American buyout firm Clayton Dubilier & Rice (CD&R). The group’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.