Big 4 grocer Asda is preparing a £450 million swoop on the Co-op Group’s forecourt business.
In a bid to move into the UK convenience sector, supermarket giant Asda is the leading contender to acquire the symbol group‘s fuel retailing arm, which includes a substantial convenience operations, Sky News reported.
According to sources, the deal could be struck as soon as this week, however, other parties also remain interested in the symbol group’s assets.
If Asda does win the deal, the acquisition will boost the privately-owned supermarket chain’s market presence in convenience retailing.
READ MORE: Asda sales decline to £4.9bn in Q2
This comes as Asda has launched its convenience format, Asda on the Move, but lags behind Big 4 rivals Tesco and Sainsbury’s in size.
Sources close to the symbol group, which appointed its first female CEO in its 159 year history, confirmed to Sky News that it is Asda rather than its owners Issa brothers company EG Group that is in talks to buy the assets.
The Co-op has been working with investment bankers at Rothschild to explore the sale of its estate of around 130 petrol stations, with proceeds from the sale to be used to reduce the mutual’s debt levels.
The sale will also provide capital to invest in digital capabilities across other areas in which it operates.
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