Morrisons is in talks to sell its 340-strong petrol forecourts business to Motor Fuel Group (MFG), which is also owned by private equity firm CD&R.
The business is expected to be valued at around £2.5bn, according to Sky News.
The funds would help Morrisons pay off some of the £6.6bn debt pile that it accumulated after CD&R’s acquired the Bradford-based grocer in 2021.
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CD&R had highlighted the “potential opportunity for a commercial operational partnership between Morrisons and MFG” two years ago.
It is not the first time the private equity firm has sold off some of Morrison’s assets. It sold seven of the grocer’s warehouses, which it now leases back, and has looked to sell a tranche of its supermarkets.
The potential MFG deal, which could be agreed in the next month or two, is similar to Asda’s acquisition of EG Group’s UK and Ireland operations that was unveiled in May as both businesses are owned by the Issa brothers and TDR Capital.
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Robbing Peter to pay Paul comes to mind.