Asda has formally completed a deal to acquire 132 petrol forecourt sites from the Co-op, subject to regulatory approval.
The supermarket giant said the purchase would create “an exciting new part of the Asda business” focused on growing its convenience business.
The £600m deal, which was initially revealed at the end of August, includes 129 existing sites across the UK and three further sites currently under development.
All stores will remain separate from the Asda business while the Competition and Markets Authority (CMA) completes its investigation into the deal. That process is expected to last until the middle of next year.
Once that has concluded, Asda said that around 2,300 employees will transfer to Asda, following consultation with shopworkers union USDAW, “as part of its new and distinct convenience business”.
The big four grocer is making a concerted play in the convenience space as it bids to make up ground on the likes of Tesco and Sainsbury’s.
Earlier this month, Asda lifted the lid on its new Express c-store format as it bids to rapidly grow its convenience credentials.
The first of the new shops is due to open in Sutton Coldfield next week, with 30 openings planned by the end of 2023.
The stores will stock 3,000 products, including fresh, chilled and ambient groceries, hot and cold food-to-go lines and options from partner brands including Leon.
Asda co-owner Moshin Issa said: “We are delighted to formally complete the transaction that we announced in August and taking the next step on our journey to creating a new and exciting part of our Asda business.
“As millions of families deal with the day-to-day impacts of increasing costs of living, we’re committed to bringing Asda’s great value groceries and fuel to even more communities across the UK through these new stores.”
Issa added: “We look forward to working collaboratively with the CMA on their investigation and to welcoming our new Asda colleagues to our great business in the coming months.”
In a brief statement confirming the deal this morning, the Co-op said proceeds from the sale would be used “to reinvest into Co-op’s leading core convenience business, pricing, store operations, technology, and logistics, as well as to further support the reduction of Co-op’s net debt”.
• Sign up for our daily morning briefing to get the latest retail news and analysis
No comments yet