Morrisons in £2.5bn petrol station sell-off
MORRISONS is selling its 337 petrol forecourts to private equity stablemate Motor Fuel Group (MFG) in a £2.5bn deal.
As part of the tie-up, MFG will buy more than 400 locations from the supermarket that will offer ultra-rapid electric vehicle chargers.
At the same time, Bradfordbased Morrisons is taking a 20pc stake in MFG.
Both companies are controlled by US buyout group Clayton, Dubilier & Rice (CD&R).
Morrisons is battling to turn around its fortunes after a run of dismal financial results since it was taken over by CD&R three years ago.
The supermarket said it did not expect any job losses as part of the deal and would continue to supply the food sold at the forecourts.
Billed as a new ‘strategic partnership’ between the two companies, Morrisons said the deal would fund further investment
in its grocery and foodmaking business and strengthen its finances.
Morrisons chairman Sir Terry Leahy said about £2bn would be invested back into the supermarket group.
The deal will also help the supermarket address its £5.5bn debt pile.
Clive Black, analyst at investment group Shore Capital, played down the likely impact on the supermarket sector.
‘We do not think it rocks the
UK grocery market apple cart,’ he said.
Morrisons is battling the increasingly popular discounters Aldi and Lidl.
Industry data published yesterday showed that Morrisons’ hold on the grocery market was sliding even further.
The beleaguered grocer held 8.8pc of the market over the three months to January 21, whereas it held 9.1pc a year earlier, according to Kantar’s latest numbers.