Motor Fuel Group (MFG) has announced the proposed acquisition of 337 Morrisons petrol forecourts and more than 400 associated sites, across the UK, for Ultra-Rapid electric vehicle (EV) charging development.
A part of the £2.5bn proposed deal, Morrisons will acquire a minority stake of around 20% in MFG as well as establishing commercial and supply agreements with MFG.
MFG has said that the proposed transaction aims to create significant synergies across fuel and ancillary services, as well as scale advantages and growth opportunities for both businesses.
In addition, it hopes to benefit UK motorists and shoppers at the pump and in store, as well as helping the UK prepare for the end of new diesel and petrol car sales in 2035 as the Government strives to meet its 2050 net zero target.
An expected benefit of the transaction will include an investment and instalment into the Ultra-Rapid EV charging infrastructure across the sites acquired by MFG, significantly expanding MFG’s market leading nationwide EV network.
The proposed investment will position MFG as one of the largest ultra-rapid EV charge point operators in the UK, with over 1,300 sites serving and powering millions of customers a week. It will also aim to grow the forecourt operator to become the UK’s number two convenience store operator serving communities across the country.
MFG has also made a commitment to a £400m EV rollout by 2030 and plans to electrify around 800 sites with thousands of ultra-rapid chargers across the combined estate.
For Morrisons, the proceeds of the sale will fund further investment in the grocery and food making businesses, as well as strengthening the business’s capital structure.
William Bannister chief executive officer of MFG explains that the acquisition of the Morrison forecourts is the next major growth investment for the company: “It is anchored in the potential for us to accelerate the roll-out of Ultra-Rapid EV charging infrastructure across the UK while also giving customers a first-class retail offer. We will be there to serve and power our customers, regardless of what car they drive in the years and decades ahead as we play a key role in keeping the country and its economy moving. We look forward to working with Morrisons to provide best-in-class charging, refuelling and retail experiences for all our customers.”
Rami Baitiéh chief executive of Morrisons said that the partnership will see the two companies combine their expertise and resources in a move to deliver the best value for customers: “It means Morrisons customers will continue to see a competitive and attractive forecourt offering, including expanded access to EV charging, while also benefitting from greater focus on investment in Morrisons’ core food business. We are delighted to have such a strong partner in MFG and look forward to the opportunities a combined MFG and Morrisons forecourt offering will provide.”
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