Morrisons in £2.5bn petrol station sell-off

On Jan 31, 2024

Updated: 22:00, 30 January 2024

Morrisons is promoting its 337 petrol forecourts to personal fairness stablemate Motor Fuel Group (MFG) in a £2.5billion deal.

As a part of the tie-up, MFG will purchase greater than 400 places from the grocery store that can supply ultra-rapid electrical automobile chargers.

At the identical time, Bradford-based Morrisons is taking a 20 per cent stake in MFG.

Both corporations are managed by US buyout group Clayton, Dubilier & Rice (CD&R).

Morrisons is battling to show round its fortunes after a run of dismal monetary outcomes because it was taken over by CD&R three years in the past.

Sell-off: Morrisons is selling its 337 petrol forecourts to its private equity stablemate Motor Fuel Group

Sell-off: Morrisons is promoting its 337 petrol forecourts to its personal fairness stablemate Motor Fuel Group

The grocery store mentioned it didn’t count on any job losses as a part of the deal and would proceed to provide the meals offered on the forecourts.

Billed as a brand new ‘strategic partnership’ between the 2 corporations, Morrisons mentioned the deal would fund additional funding in its grocery and food-making enterprise and strengthen its funds.

Morrisons chairman Sir Terry Leahy mentioned about £2billion can be invested again into the grocery store group.

The deal may also assist the grocery store deal with its £5.5billion debt pile.

Clive Black, analyst at funding group Shore Capital, performed down the seemingly influence on the grocery store sector.

‘We do not think it rocks the UK grocery market apple cart,’ he mentioned.

Morrisons is battling the more and more widespread discounters Aldi and Lidl.

Industry knowledge printed yesterday confirmed that Morrisons’ maintain on the grocery market was sliding even additional.

The beleaguered grocer held 8.8 per cent of the market over the three months to January 21, whereas it held 9.1 per cent a 12 months earlier, in keeping with Kantar’s newest numbers.

Sales lag towards rivals

Morrisons has as soon as once more emerged as one of many worst performing of Britain’s main supermarkets within the wake of its personal fairness takeover.

Retail knowledge supplier Kantar revealed gross sales at Morrisons within the 12 weeks to January 21 had been simply 2.8 per cent increased than a 12 months earlier.

That was higher than the two.1 per cent rise seen at Asda, which can also be floundering below personal fairness possession.

By distinction, Lidl was the quickest rising grocery store, with gross sales up 11.9 per cent.

Aldi noticed a 7.2 per cent rise. Tesco and Sainsbury’s additionally gained market share as gross sales rose by 6.3 per cent and eight.1 per cent respectively.

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