UK-based independent forecourt operator Motor Fuel Group (MFG) is in talks to acquire 340 fuel retail forecourts from supermarket chain Morrisons.
The deal, worth an enterprise value of up to £2.5bn ($2.49bn), is expected to be agreed during the summer.
Citing a statement by the company, Reuters reported that it will also include 500 freehold plots of land at Morrisons’ locations for the deployment of ultra-rapid electric vehicle (EV) and valeting hubs.
The news agency quoted MFG as saying: “MFG is already committed to invest £400m over ten years into building ultra-rapid EV hubs across their existing 900-strong MFG forecourt network.”
Sky News, which first reported the news, said that the deal, if materialised, would have benefits for both parties.
The news channel quoted one person close to the negotiation as saying: “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.”
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MFG, one of the largest independent forecourt operators, offers services through more than 900 sites. Morrisons is Britain’s fifth largest supermarket group.
Both MFG and Morrisons, which are controlled by private equity firm Clayton Dubilier & Rice (CD&R), declined to comment when approached by Reuters.
In June last year, the Competition and Markets Authority approved the acquisition of Morrisons by US private equity company CD&R for £7bn.