Morrisons has partnered with Motor Fuel Group (MFG) in a £2.5bn acquisition agreement as the supermarket realigns its priorities towards its core food business.
The new transaction will see the petrol giant purchase 337 Morrisons petrol forecourts (including fuel, convenience retail kiosks and ancillary services) and more than 400 associated sites across the UK, for Ultra-Rapid electric vehicle (“EV”) charging development.
In turn, the grocer will now own a 20% minority stake in MFG, while still supplying groceries across the 337 petrol forecourts – all of which will retain Morrisons’ brand onsite.
Morrisons CEO Rami Baitiéh said that the deal will allow the supermarket a “greater focus on investment” in its core food business and promised continued “value for money” for customers.
It is also thought that funds from the new acquisition will allow the retailer to partially reduce some of its £5.17bn debt pile.
It comes amid a similar agreement made between Asda and EG Group’s UK and Ireland forecourt business last year.
Baitiéh 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.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
“It means customers will continue to see a competitive and attractive forecourt offering, including expanded access to EV charging, while also benefitting from 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.”
The plans will also make the MFG one of the largest ultra-rapid EV charge point operators in the UK, with over 1,300 sites serving millions of customers a week.
MFG CEO William Bannister added: “MFG is proud to be a British entrepreneurial success story that is investing in jobs, critical infrastructure, and serving our communities to help the country achieve its decarbonisation transition. This strategic acquisition, and the resulting partnership with the highly respected Morrisons brand, is the next major growth investment for MFG.
“It is anchored in the potential for us to accelerate the roll-out of Ultra-Rapid EV charging infrastructure across the UK while also giving customers a first-class retail offer. We look forward to working with Morrisons to provide best-in-class charging, refuelling and retail experiences for all our customers.”
The two businesses confirmed that no redundancies will be made following the acquisition and workers will receive the same position and pay post-transaction.
More to follow.
