Motor Fuel Group (MFG) is reportedly in talks to buy Morrisons’ portfolio of 340 petrol station forecourts in a deal that could be worth up to £2.5bn.
Morrisons “has opened discussions” with the business regarding a deal and an agreement could be confirmed this autumn, Sky News has reported.
Morrisons and MFG are both owned by private equity firm Clayton, Dubilier & Rice (CD&R) and the deal is said to be part of MFG’s target to expand its ultra-fast electric vehicle (EV) charging network.
The grocer and MFG are said to be “keen to position the agreement as a commercial tie-up”, which comes after CD&R first outlined the “potential opportunity” for a partnership two years ago.
Banking sources told Sky the deal was being negotiated from a “proactive position” and that it would benefit both parties if it went ahead as neither is due to face refinancing deadlines until 2027.
A source close to the discussions said: “A deal will allow both companies to play to their strengths, with Morrisons’ pumps operated by MFG, a best-in-class forecourt operator, and the supermarket chain focusing on what it does best – food making and retailing.”
The source also told Sky that customers would get “better value at the pump” due to MFG’s ability to leverage the price benefits of fuel purchases in bulk.
Morrisons, CD&R and MFG did not provide a comment.
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