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Morrisons has successfully closed the sale of 337 Morrisons’ petrol forecourts and more than 400 associated sites on the Morrisons’ car parks to Motor Fuel Group (MFG) for £2.5bn.
The transaction, which was originally announced in January, forms a new strategic partnership between the two companies.
As part of the deal, Morrisons has taken a minority stake of approximately 20% equity interest in MFG and entered into commercial and supply agreements with MFG, underscoring the long-term nature of the partnership.
Morrisons intends to use the cash proceeds of £1.8bn (after fees and expenses related to the transaction) to strengthen its capital structure and repay certain of its debt obligations.
The deal will create significant synergies across fuel retail and ancillary services, as well as scale advantages and growth opportunities for both businesses. The transaction will be a significant creator of jobs, as investment in EV charging, valeting and the expansion of the convenience offer and modernisation of Morrisons petrol forecourts drives traffic to the expanded MFG estate.
Rami Baitiéh, CEO of Morrisons, said: “Morrisons customers will continue to see a competitive and attractive forecourt offering, including expanded access to EV charging, while also benefiting from greater focus on investment in Morrisons’ core food business. We are delighted to have such a strong partner in MFG and look forward to the opportunities a combined MFG and Morrisons forecourt offering will provide.”
William Bannister, CEO of MFG, added: “This strategic acquisition, and the resulting partnership with the highly respected Morrisons brand, is the next major growth investment for MFG. 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 look forward to working with Morrisons to provide best-in-class charging, refuelling and retail experiences for all our customers.”
