The Co-operative Group has completed the £611m sale of their petrol forecourts estate to Asda as stated on the London Stock Exchange this morning.
The transaction includes 129 petrol forecourt sites, spread across the UK and represents 5% of Co-op’s retail estate of 2,564 stores.
Recently appointed Shirine Khoury-Haq, the Chief Executive at the Co-op Chief Executive at the Co-operative Group comments: “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.
“I would like to thank our incredible colleagues in these stores, and we will work closely with Asda to ensure a smooth transition.”
The transaction is due to complete in Q4 2022, although the acquisition is subject to review by the Competition & Markets Authority (CMA).
The co-op has stated that its primary focus is on developing further its leading core convenience proposition, and the proceeds from the sale of its relatively small non-core petrol forecourt business, will be used to:
· Reinvest into Co-op’s leading core convenience business centred around its retail estate, as well as its growing wholesale, franchise and e-commerce operations, including new convenience stores in the heart of more communities
· Invest in Co-op’s pricing, store operations, technology, and logistics
· Support the reduction of Co-op’s net debt
