Morrisons and Motor Fuel Group (MFG) have entered an agreement whereby the former will take a £2.5bn minor stake and the latter will acquire 337 of the grocer’s petrol stations.
MFG, owned by private equity firm CD&R, which also owns Morrisons, will take ownership of 337 of the retailer’s petrol forecourts and more than 400 associated sites across the UK in a £2.5bn transaction that will form a “new strategic partnership between the two companies”.
Morrisons will take an approximately 20% stake in MFG and enter into commercial and supply agreements with the petrol forecourt operator.
In a joint statement, the businesses said the proposed transaction “will create significant synergies across both fuel retail and ancillary services, as well as scale advantages and growth opportunities for both businesses”.
The two companies also gave a “commitment to supermarket fuel pricing across the Morrisons estate”, and would also help MFG scale up its ultra-rapid electric vehicle (EV) charging infrastructure.
The statement added: “This level of investment will position MFG as one of the largest and most significant ultra-rapid EV charge point operators in the UK, with over 1,300 sites serving and powering millions of customers a week.”
The move will also make MFG the UK’s second-largest convenience store operator.
Morrisons said the “proceeds of the sale will fund further investment in the grocery and food making business, as well as significantly strengthening the business’s capital structure”.
The businesses said they “anticipate the transaction will be a significant creator of jobs”.
Morrisons chief executive Rami Baitiéh 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 our supermarkets.
“It means Morrisons customers will continue to see a competitive and attractive forecourt offering, including expanded access to EV charging, while also benefiting from a 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.”
No comments yet