Morrisons to sell 337 petrol forecourts in £2.5bn deal

Morrisons has revealed it has agreed a deal with Motor Fuel Group (MFG) to sell 337 Morrisons petrol forecourts (including fuel, convenience retail kiosk and ancillary services) in a £2.5bn deal. The agreement also includes the acquisition of more than 400 associated sites, across the UK, for Ultra-Rapid electric vehicle (EV) charging development. As part of the transaction, Morrisons will take a minority stake of approximately 20% in MFG, and enter into commercial and supply agreements with MFG, underscoring the long-term nature of the commercial partnership. According to Morrisons, the proposed transaction will create “significant synergies across fuel retail and ancillary services, as well as scale advantages and growth opportunities for both businesses”. It also stated that the new agreement will benefit UK motorists and shoppers at the pump and in store, as well as help the UK prepare for the end of new diesel and petrol car sales in 2035 as the government strives to meet its 2050 net zero target. The firms said the benefits of the transaction include: A commitment to supermarket fuel pricing across the Morrisons estate. Value-for-money supermarket fuel will remain the offering on Morrisons forecourts, with the Morrisons brand above the door. MFG will invest and install Ultra-Rapid EV charging infrastructure across the sites acquired by MFG, significantly expanding MFG’s market leading nationwide EV network. MFG is targeting the installation of 800 Ultra-Rapid 150kW EV chargers, in hubs, within the first five years alone. These chargers can add 100 miles of range in approximately 10 minutes. Significant investment to expand and improve the convenience retail proposition, with a focus on enhancing the retail environment, food-to-go and valeting facilities to customers, and Morrisons will continue to supply food and groceries across the 337 Morrisons petrol forecourts with the opportunity to expand its supply into the MFG estate over the medium term through its fast-growing wholesale operation. For Morrisons, the proceeds of the sale will fund further investment in the grocery and food making businesses, as well as significantly strengthening the business’s capital structure. It also anticipates 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. Every Morrisons forecourt colleague will be provided with an in-store position on the same pay and employment terms, and in nearly all circumstances this position will most likely be in the store to which the forecourt is attached. There will be no compulsory redundancies. Following the acquisition of Morrisons in October 2021 all parties worked collaboratively with the Competition and Markets Authority (CMA) throughout 2022, with MFG subsequently selling 87 sites, thereby satisfying any competition concerns. Rami Baitiéh, CEO of Morrisons, 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 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.”