Supermarket group Asda is reportedly preparing to make a £450m swoop on the Co-op Group’s petrol forecourt business, according to Sky News.
The outlet reports that Asda is the leading contender to buy Co-op’s fuel retailing arm, which includes a sizeable convenience operation.
According to the source, a deal could be struck as “soon as this week”.
Asda, which changed hands last year in a £6.8bn deal, already owns a convenience format called Asda on the Move, however the current fuel market is dominated by Tesco and J Sainsbury.
Formerly owned by Walmart, Asda is now owned by the Issa brothers and TDR Capital, who also control EG Group, one of the largest independent fuel retailers in Europe.
It comes after Sky News revealed last week (26 August) that the Co-op was working with bankers at Rothschild to explore a sale of its estate of roughly-130 petrol forecourt sites.
It is thought the proceeds from the sale would be used to reduce its debt pile, strengthening its balance sheet, while providing capital to invest in digital capabilities across other areas in which it operates.
News of the prospective sale also comes days after the Co-op announced the appointment of Shirine Khoury-Haq as its first female chief executive.
Retail Sector has contacted Asda and Co-op for comment.
