LONDON: In a landmark transaction, WM Morrison Supermarkets Limited, commonly known as Morrisons, has announced the successful completion of a £2.5 billion deal with Motor Fuel Group (MFG). The agreement sees the sale of 337 of Morrisons’ petrol forecourts, along with over 400 car park sites across the UK, earmarked for the development of ultra-rapid electric vehicle (EV) charging stations.
This strategic move not only signifies a new partnership between Morrisons and MFG but also highlights Morrisons’ commitment to its convenience growth strategy. As part of the deal, Morrisons has acquired a 20% equity stake in MFG and has entered into long-term commercial and supply agreements, reinforcing the partnership’s enduring nature.
Morrisons plans to allocate the £1.8 billion net cash proceeds from the transaction to bolster its capital structure and address certain debt obligations. The company is considering reinvesting up to £1 billion of the proceeds, while also exploring efficient methods for debt reduction, which may involve discussions with debt holders, tender offers, or the redemption of debt instruments.
The transaction was supported by HSBC Bank plc and Rabobank, serving as financial advisors, while legal counsel was provided by Kirkland & Ellis and Eversheds. Deloitte contributed its expertise as accounting advisors.
Established in 1899 and headquartered in Bradford, Morrisons stands as a quintessential British food retailer, operating around 500 supermarkets and 1,000 convenience stores. With a workforce exceeding 100,000, the company prides itself on being the largest direct customer of British farming, ensuring that all Morrisons branded fresh meat and butcher counter offerings are 100% British. At the core of Morrisons’ ethos is a dedication to its role as foodmakers and shopkeepers.