Morrisons considers offloading petrol forecourts in £2.5bn deal
It is understood that the retailer opened discussions with MFG about a deal, with an agreement possible during the autumn
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Morrisons is considering offloading its 340 fuel retail sites in a £2.5bn acquisition by CD&R-owned Motor Fuel Group (MFG), Sky News has reported.
News of the talks between Morrisons and MFG comes months after CD&R stopped a potential sale of the latter business.
It is understood that the retailer opened discussions with MFG about a deal, with an agreement possible during the autumn.
While Morrisons’ fuel retailing operation encompasses approximately 340 sites, an additional 150 could be added in this transaction as MFG targets a significant expansion of its EV charging network.
According to Sky’s industry sources, this potential acquisition echoes a deal that was explored between EG Group and Asda, which eventually culminated in an announcement in May that Asda would acquire EG’s operations in the UK and Ireland.
Meanwhile, banking sources reported that the deal would be mutually beneficial for both businesses, with neither facing refinancing deadlines until 2027.
The two sides are said to be keen to position the agreement as a commercial tie-up, the possibility of which was initially flagged two years ago when CD&R outlined the “potential opportunity for a commercial operational partnership between Morrisons and MFG”.
A person close to the talks told Sky: “A deal will allow both companies to play to their strengths, with Morrisons’ pumps operated by MFG, a best-in-class forecourt operator, and the supermarket chain focusing on what it does best – food making and retailing.
“It would also strengthen Morrisons’ ability to invest in its wholesale and convenience offerings as channels for growth.”
CD&R, Morrisons and MFG all declined to comment.
