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Morrisons agrees to sell forecourts arm in £2.5bn deal

UK supermarket chain Morrisons has agreed a £2.5 billion deal to sell its 337 petrol forecourts to Motor Fuel Group (MFG). The proposed transaction – which includes fuel, convenience retail kiosk and ancillary services – forms a new strategic partnership between the two companies. As part of the deal, Morrisons will take a minority stake of approximately 20% in MFG and will enter into commercial and supply agreements with the company. The deal will see an investment to expand and improve the convenience retail proposition, with a focus on enhancing the retail and food-to-go environment. Additionally, Morrisons will continue to supply food and groceries across all of the petrol forecourts, with the opportunity to expand its supply into the MFG estate over the medium term. The deal will position MFG as the UK’s number two convenience store operator serving communities across the country. Morrisons will use the proceeds of the sale to fund further investment in the grocery and food-making businesses, as well as strengthening its capital structure.

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