The Co-op has agreed to sell its petrol forecourt business to Asda for £600m.
The transaction includes 129 petrol forecourt sites, spread across the UK, and represents 5% of Co-op’s retail estate of 2,564 stores. The stores being sold delivered net sales of £863m and pro forma pre-tax earnings of £53m for 12 months to June 2022.
Co-op says the proceeds from the sale will be reinvested into its core convenience business – in its pricing, store operations, technology, and logistics – and will be used to grow its wholesale, franchise, and e-commerce operations.
Shirine Khoury-Haq, chief executive at the Co-op, said: “This transaction is in line with our strategy to move away from operating petrol forecourts and supports our vision of co-operating for a fairer world while building our core leading convenience business.”
Mohsin Issa, co-owner of Asda, added: “We see convenience as a significant growth opportunity for the business. This acquisition accelerates our strategy in this area and forms part of our long-term ambition to become the UK’s second-largest supermarket.”
The 2,300 employees currently employed in the Co-op stores will transfer to Asda under TUPE transfer.
The transaction is due to complete in the fourth quarter of 2022.
