Asda is buying the Co-operative Group's petrol station business in a £600 million deal as it expands into the convenience retailing sector.
The sale will see 5 per cent of the Co-op’s entire retail estate – including 129 petrol stations and three development sites – handed over to Asda, which already runs 230 petrol stations across the UK.
The Co-op said offloading its petrol forecourts will allow it to focus on its convenience business as well as raising cash for the business.
For Asda - which was taken over by the brothers Mohsin and Zuber Issa and TDR Capital last year - the move is part of its plans to become the UK's second-largest supermarket chain. It currently sits in third place behind market leader Tesco and Sainsbury's.
Moshin Issa said the convenience sector represents a "significant opportunity" to grow the business.
"We have always been clear in our ambition to grow Asda and are hugely excited to create this new and distinct part of our business, giving us the opportunity to bring Asda value in fuel and groceries to even more customers and communities across the UK," he added.
Asda will pay £438m in cash and take on around £162m of lease liabilities as part of the deal, with the final amount set to be confirmed on completion later this year.
Around 2,300 Co-op staff who work across the sites being sold will transfer over to Asda once the deal is complete. It is expected to close by the end of this year.
Pub and brewing giants call for support to survive energy crisis
Major names from the world of brewing and pubs have issued a direct appeal to the UK Government for support to help the industry through the energy price crisis, warning that hikes of up to 300 per cent on pre-pandemic bills will result in businesses closing and jobs being lost.
As pressure grows on Downing Street to outline how it will support the country as it faces unprecedented increases in energy bills, chief executives of leading brewers and pub groups have written to the Government and the Conservative leadership candidates stressing the need for emergency aid.
The letter, signed by six business leaders, warns of the “real and irreversible” damage that the energy price crisis will cause without a support package that caps prices for business.
Mocean gears up for growth with two key appointments
Wave power specialist Mocean Energy has made two key board appointments as it prepares for a further round of funding to bring in “high impact” investors in the next 12 to 18 months.
Oil and energy industry veteran Torger Skillingstad has joined Mocean as chairman, while angel investor Lynne Ross has taken a non-executive post on the board of directors. Both appointees are existing investors in the company and Ms Ross will represent Equity Gap, Mocean’s lead investor, on the board.
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