Morrisons is in talks to sell its petrol forecourts business to Motor Fuel Group (MFG), which is also owned by private equity firm CD&R.
A deal could come in the next month or two for Morrisons’ 340 forecourts, which Sky News reported could be worth around £2.5bn.
CD&R had flagged the “potential opportunity for a commercial operational partnership between Morrisons and MFG” two years ago.
The funds would help Morrisons pay off some of the £6.6bn debt pile that was dumped upon the grocer following the CD&R’s acquisition in 2021.
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If the deal goes ahead, it is likely to stoke concerns that the private equity firm is selling off Morrisons asset base, which the late Sir Ken Morrison built and prized, in order to pay down debts.
CD&R has already sold off seven of the grocer’s warehouses, which it now leases back.
The potential MFG deal mirrors a similar transaction that was agreed in May by Asda to buy EG Group’s UK and Ireland operations. Both businesses are owned by the Issa brothers and TDR Capital.
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1 Comment. Leave new
Morrisons are in its death throws. Within five years it is likely that the brand won’t exist. The new owners should have totally overhauled the supermarket’s business ethos, instead though, they backed it.