Motor Fuel Group to acquire 337 Morrisons petrol forecourts in £2.5bn deal

Motor Fuel Group (MFG), in a landmark agreement, has acquired 337 Morrisons petrol forecourts, including fuel, convenience retail kiosks, and ancillary services, across the UK. This monumental £2.5bn transaction not only signifies a new strategic partnership between MFG and Morrisons but also marks a pivotal step in the development of Ultra-Rapid electric vehicle (EV) charging infrastructure.

The deal’s core features Morrisons taking a 20% minority stake in MFG, cementing the long-term nature of this commercial partnership. The transaction is set to create synergies across fuel retail and ancillary services, offering scale advantages and growth opportunities for both entities. It will benefit UK motorists and shoppers, aligning with the Government’s 2035 target to phase out new diesel and petrol car sales, thus aiding the 2050 net-zero goal.

One of the major highlights of this transaction includes a commitment to maintaining supermarket fuel pricing across the Morrisons estate. This move ensures value-for-money fuel offerings remain constant at Morrisons forecourts. Moreover, MFG plans to invest in the installation of 800 Ultra-Rapid 150kW EV chargers within five years. These chargers are capable of adding 100 miles of range in approximately 10 minutes, significantly enhancing the EV charging infrastructure in the UK.

Additionally, significant investments are planned to improve the convenience retail proposition, focusing on retail environment, food-to-go, and valeting facilities. Morrisons will also continue to supply food and groceries across these forecourts, with potential expansion into the MFG estate through its wholesale operation.

This investment positions MFG as one of the UK’s largest ultra-rapid EV charge point operators, with plans to electrify around 800 sites with thousands of Ultra-Rapid chargers. MFG’s commitment to completing a £400m EV rollout by 2030 is a testament to its dedication to the country’s decarbonization transition.

The proceeds from this sale will enable Morrisons to further invest in its grocery and food-making businesses, significantly strengthening its capital structure. The transaction is expected to be a significant job creator, with investment in EV charging and the expansion of convenience offers modernizing Morrisons petrol forecourts and driving traffic to the expanded MFG estate. Notably, there will be no compulsory redundancies as Morrisons forecourt colleagues will be provided with in-store positions on the same pay and employment terms.

The acquisition follows the collaborative work with the Competition & Markets Authority (CMA) throughout 2022, with MFG subsequently selling 87 sites to address competition concerns.

Rami Baitiéh, CEO of Morrisons, and William Bannister, CEO of MFG, both expressed enthusiasm for the partnership, highlighting its potential to accelerate Ultra-Rapid EV charging infrastructure rollout across the UK while also enhancing the retail offer for customers. Melanie Shufflebotham, Co-founder & COO at Zapmap, also commended this move, recognizing its significance in expanding the Ultra-Rapid network and promoting low emission mobility.

This strategic acquisition and partnership between Motor Fuel Group and Morrisons represent a major step in the UK’s journey towards sustainable transportation and a net-zero carbon future, emphasizing the role of corporate collaboration in achieving these ambitious goals.