Asda reported to be plotting £450m Co-op fuel retail swoop

Supermarket chain Asda is reportedly getting ready to accelerate a long-expected move into Britain’s convenience store sector, with a £450m takeover of the Co-op Group’s petrol forecourt business.

Sky News says it has learned that Leeds-headquartered Asda is the frontrunner to buy the Co-op’s fuel retailing arm, which includes a major convenience operation.

According to Sky, sources said a deal could be reached as soon as this week, although they warned parties other than Asda also remained interested in the Co-op assets.

Asda, which changed hands last year in a £6.8bn deal, does have a convenience format called Asda on the Move, but currently it is only a small operator in this market compared to Tesco and Sainsbury.

Previously owned by Walmart, Asda is now owned by the Issa brothers and TDR Capital, who also control EG Group, which is one of the biggest independent fuel retailers in Europe.