Morrisons has sold 337 of its petrol forecourts to MFG in a £2.5bn deal, as it takes a minority stake in the petrol station giant.
The deal forms “a new strategic partnership” between the two companies, which are both owned by private equity firm CD&R, and will see Morrisons take around a 20% stake in MFG and enter into commercial and supply agreements with the business.
The supermarket will use the proceeds of the sale to “fund further investment in the grocery and food making businesses, as well as significantly strengthening the business’s capital structure”.
The grocer is expected to use some of the funds to pay down part of its £5.17bn debt pile.
The transaction follows a similar deal done by Asda, which bought fellow Issa brothers-owned business EG Group’s UK and Ireland forecourt business last September.
MFG builds EV business as Morrisons boosts wholesale reach
MFG plans to use the Morrisons sites to develop a rapid EV charging business, with 800 ultra-rapid chargers planned in the first five years.
The pair said “significant synergies” would be created through the transaction, which it insisted would help both UK motorists and shoppers at the pump and in store.
They promised “value for money” supermarket fuel on the forecourts and “significant investment” to expand and improve the convenience retail offer at the sites.
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Morrisons will continue to supply food and groceries across the 337 forecourts, as it looks to expand its supply across the MFG estate over “the medium term” through its wholesale operation.
The pair confirmed that no redundancies will be made following the transaction and every forecourt worker will have an in-store position on the same pay and employment at MFG.
Morrisons CEO 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 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.”
MFG CEO William Bannister said the acquisition was the “next major growth investment” for the business.
“It is anchored in the potential for us to accelerate the roll-out of ultra-rapid EV charging infrastructure across the UK while also giving customers a first-class retail offer.
“We will be there to serve and power our customers, regardless of what car they drive in the years and decades ahead as we play a key role in keeping the country and its economy moving.”
CD&R had previously agreed to sell 87 MFG sites in 2022 in order to get the green light from the CMA for its £7bn Morrisons acquisition.
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