Morrisons is edging closer to selling its petrol forecourts to Motor Fuel Group (MFG) in a £2.5bn deal.
The supermarket chain and MFG, which are both majority-owned by private equity firm Clayton Dubilier & Rice (CD&R), are understood to be weeks away from a formal agreement, according to Sky News, as one source told the publication that a deal could be as early as February.
Morrisons currently operates around 340 petrol forecourt sites.
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Insiders told Sky News that the grocer is likely to use a large portion of the proceeds to pay off some of its £5.7bn debt, while the deal will also allow Morrisons to invest in its wholesale and convenience businesses.
Over the past year, the UK’s leading grocers have been hit with scrutiny over their fuel forecourt operations.
The Competition and Markets Authority (CMA) found that drivers buying fuel from the UK’s four main supermarket-owned forecourts had paid an additional £900m in 2022, as a result of the retailers hiking their profit margins.
While the CMA set out a voluntary scheme last year, asking retailers to release their fuel pricing information, new Pumpwatch proposals will force fuel retailers to share live pricing information within 30 minutes of any changes.
The new scheme from the Department for Energy Security and Net Zero (DESNZ), which is out for consultation, looks to help drivers find the best deals and could save customers 3p per litre.
