British supermarket group Morrisons has agreed to sell 337 petrol forecourts to Motor Fuel Group (MFG) in a deal worth £2.5 billion, it was announced today.
The deal will see more than 400 associated sites across the UK being used for electrical vehicle (EV) charging development.
The grocery retailer plans to use the proceeds from the deal to invest in its grocery offerings and strengthen its capital structure.
The proposed £2.5 billion transaction forms a new strategic partnership between the two companies, and Morison’s will take a minority stake of approximately 20% equity interest in MFG.
Morrisons will also enter into commercial and supply agreements with the company.
"The proposed transaction will create significant synergies across fuel retail and ancillary services, as well as scale advantages and growth opportunities for both businesses," the companies said, adding the deal would be a significant creator of jobs.
As part of the move, there are not expected to be any compulsory redundancies in connection with the implementation of the transaction.
Both Morrisons and MFG are owned by US private equity group Clayton, Dubilier & Rice (CD&R).
CD&R paid £7 billion for Morrisons in 2021, leaving it with a hefty debt burden.
Morrisons, which is scheduled to report 2022/2023 results on Wednesday, has been losing UK grocery market share, ending 2023 with 8.8%, down 30 basis points on the year, according to researcher Kantar.