Morrisons has reached agreement to sell off 337 of its forecourts to Motor Fuel Group (MFG) in a deal that will boost EV rapid charging while maintaining a value-for-money fuel offer.

MFG will invest and install ultra-rapid EV charging infrastructure across the Morrisons forecourts that it acquires

In turn, Morrisons will take a minority stake in the forecourt operator in a deal worth around £2.5bn. It will also continue to supply food and groceries across its former forecourts.

The proposed transaction forms a new strategic partnership between the two companies, both majority-owned by private equity firm Clayton Dubilier & Rice (CD&R).

The firms said the deal would benefit UK motorists and shoppers at the pump and instore while also supporting the 2035 ICE ban with a major rollout of EV charging.

MFG will invest and install ultra-rapid EV charging infrastructure across the sites it acquires, significantly expanding its nationwide EV network.

The independent forecourt operator already has big plans to install 2,800 ultra-rapid 150kW and 350kW EV chargers at around 500 of its sites by the end of 2030 under a £400m investment.

It’s now targeting the installation of 800 ultra-rapid 150kW EV chargers, located within hubs across the combined estate, within the first five years alone.

The investment will position MFG as one of the largest and most significant ultra-rapid EV charge point operators in the UK, with over 1,300 sites.

MFG is also committing to maintaining supermarket fuel pricing with a value-for-money approach across the Morrisons estate, which will retain the Morrisons brand.

It’s also pledging significant investment to expand and improve the convenience retail proposition, with a focus on enhancing the retail environment, food-to-go and valeting facilities to customers.

For Morrisons, the proceeds of the sale will fund further investment in the grocery and food making businesses, as well as significantly strengthening the business’s capital structure.

We anticipate the transaction will be a significant creator of jobs, as investment in EV charging, valeting and the expansion of the convenience offer and modernisation of Morrisons petrol forecourts drives traffic to the expanded MFG estate. MFG operates a different model to Morrisons with colleagues employed directly by the franchise holder. Every Morrisons forecourt colleague will be provided with an in-store position on the same pay and employment terms, and in nearly all circumstances this position will most likely be in the store to which the forecourt is attached. There will be no compulsory redundancies.

MFG said it had already worked with the Competition & Markets Authority (CMA) to address concerns following CD&R’s acquisition of Morrisons in October 2021 and sold 87 sites, in 2022.

William Bannister, CEO of MFG, said: “This strategic acquisition, and the resulting partnership with the highly respected Morrisons brand, is the next major growth investment for MFG. It is anchored in the potential for us to accelerate the roll-out of ultra-rapid EV charging infrastructure across the UK while also giving customers a first-class retail offer.

“We will be there to serve and power our customers, regardless of what car they drive in the years and decades ahead as we play a key role in keeping the country and its economy moving.”

Rami Baitiéh, CEO of Morrisons, added: “As the needs of the customer continue to evolve, Morrisons and MFG’s partnership will see us combine our respective expertise and resources to deliver the best value for customers at the pump, in our convenience stores and in our supermarkets. It means Morrisons customers will continue to see a competitive and attractive forecourt offering, including expanded access to EV charging, while also benefitting from greater focus on investment in Morrisons’ core food business.”

Zapmap, the charge point mapping and payment platform, said the deal was “undoubtedly a win for UK motorists”.

Melanie Shufflebotham, co-founder and COO, remarked: “MFG’s fast-paced rollout of charging hubs is certainly impressive, while the increased availability of ultra-rapid charging capabilities across the UK will contribute to greater adoption of vehicles, which of course pollute less and support our collective efforts to reduce harmful carbon emissions.”

To see a map of the current charging points across the MFG estate and the future charging rollout across the combined Morrisons and MFG forecourts estate, please click here.