Forecourts and supermarkets giants enter partnership
LEADING independent forecourts operator Motor Fuel Group (MFG) is acquiring 337 Morrisons filling stations while the supermarket chain is taking a minority stake in MFG in a deal worth £2.5billion.
As well as getting the 337 forecourts (including fuel, c-stores and ancillary services), MFG will gain more than 400 associated sites across the UK for ultra-rapid EV charging development.
Meanwhile, Morrisons will take a 20% stake in MFG and enter into commercial and supply agreements with the group as part of the long-term partnership.
The companies claim the tie-up will benefit motorists at the pump and shoppers in store, as well as help the UK prepare for the end of new diesel and petrol car sales in 2035.
Advantages of the transaction include a commitment to supermarket fuel pricing across the Morrisons estate and MFG investing and installing ultra-rapid EV chargers across the sites.
Money will also be spent expanding and improving the convenience retail proposition, including food to go and valeting facilities.
Additionally, Morrisons will continue to supply groceries across the 337 forecourts, with the opportunity to expand its supply into the MFG estate over the medium term through its wholesale operation.
The deal will see MFG become one of the largest ultra-rapid EV charge point operators in the UK and rise to the UK’s No.2 c-store operator.
Morrisons will use proceeds of the sale to fund further investment in the grocery and food-making businesses, as well as bolster the firm’s capital structure.
Both companies anticipate the transaction “will be a significant creator of jobs” and promise there will be no compulsory redundancies among Morrisons forecourt colleagues as the sites switch to MFG control.
MFG chief exec William Bannister said: “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.
“We look forward to working with Morrisons to provide best-in-class charging, refuelling and retail experiences for all our customers.”
Morrisons boss Rami Baitieh added: “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.”
Zapmap co-founder Melanie Sufflebotham welcomed the deal as a win for UK motorists. She said: “It’s fantastic to see MFG partnering with Morrisons to deliver reliable, high-powered charging for electric car drivers across the country.”
