30 January 2024 , 14:32
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Morrisons has agreed to a £2.5billion deal to sell its 337 petrol forecourts to Motor Fuel Group (MFG).
The deal forms “a new strategic partnership” between the two companies, which have the same private equity owner, and includes the supermarket's fuel, convenience retail kiosk and ancillary services. But the Morrisons branding will remain at the forecourts.
Morrisons will also continue to supply food and groceries across the petrol forecourts, with the supermarket chain hinting that it could expand its grocery supply into MFG's estate in the future. MFG, which like Morrisons is owned by private equity firm Clayton, Dubilier & Rice (CD&R), plans to use the sites to develop a rapid EV charging business. This move is in preparation for the end of new diesel and petrol car sales in 2035. The MFG aims to install 800 Ultra-Rapid 150kW EV chargers, in hubs, within the first five years alone of its takeover.
Staff who are currently employed at Morrisons Forecourts will be provided an in store role on the "same pay and employment terms". The supermarket chain says "nearly all positions" will be in the store attached to the forecourt site. Morrisons confirmed there would be "no compulsory redundancies".
Going forward, Morrisons and MFG anticipate the deal will create "a significant creator of jobs" as investment in EV charging heightens.
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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 benefitting from a 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.”
Following the acquisition of Morrisons in October 2021, the Competition and Markets Authority (CMA) has stepped in as it was concerned that competition within the sector could be affected. This is because not only would CD&R own all Morrisons' 337 petrol forecourts, but it would also own the MFG's other 900.
Both groups worked with the CMC over the last year and to accept the deal and satisfy competition concerns MFG had to sell off 87 sites.