Motor Fuel Group said to be closing in on £2.5bn Morrisons petrol stations deal

Bradford-headquartered supermarket chain, Morrisons, is reportedly closing in on a £2.5bn deal to sell its petrol forecourts portfolio to another company backed by the same private equity firm.

Sky News today says it understands Motor Fuel Group (MFG) is just weeks away from signing off on a takeover of Morrisons’ fuel retailing operations.

Both Morrisons and MFG are majority-owned by Clayton Dubilier & Rice (CD&R), an American buyout firm, and a deal between them could be completed by early February.

Morrisons’ fuel retailing arm comprises around 340 sites, with another 150 potentially being added as MFG sets its sights on growing its ultra-fast electric vehicle (EV) charging network.

If completed, the agreement will echo a deal confirmed last year in which Asda acquired EG Group’s petrol stations in the UK and Ireland.

Morrisons is expected to use a large part of the proceeds of the deal to pay off part of its £5.7bn debt, according to Sky.