Sale of Petrol Forecourts

Wm Morrison Supermarkets Limited

30 January 2024

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED.

For immediate release

30 January 2024

MORRISONS ANNOUNCES MFG TO ACQUIRE 337 MORRISONS FORECOURTS IN DEAL WORTH £2.5BN AS MORRISONS TAKES A MINORITY STAKE IN MFG

WM MORRISON SUPERMARKETS LIMITED (the "Company" and, together with certain affiliates, "Morrisons") announces that it has entered into an agreement relating to the proposed acquisition by Motor Fuel Group (together with certain affiliates, "MFG") of 337 Morrisons petrol forecourts (including fuel, convenience retail kiosk and ancillary services), and more than 400 associated sites across the UK for Ultra-Rapid electric vehicle ("EV") charging development, in exchange for £2.5bn (the consideration to be in the form of cash and equity instruments).

The proposed £2.5bn transaction forms a new strategic partnership between the two companies. As part of the transaction, Morrisons will also take a minority stake of approximately 20% equity interest in MFG, and enter into commercial and supply agreements with MFG, underscoring the long-term nature of the partnership.

The proposed transaction will create synergies across fuel, retail and ancillary services, scale advantages and growth opportunities across the new entity. It will benefit UK motorists and shoppers at the pump and in store, as well as helping the UK prepare for the end of new diesel and petrol car sales in 2035, as the UK Government strives to meet its 2050 net zero target. The transaction further underpins Morrisons' convenience growth strategy.

The benefits of the transaction include:

●     Leveraging the price benefits of bulk fuel purchases to support a compelling fuel value proposition for customers. Value-for-money supermarket fuel will remain the offering on forecourts that will retain the Morrisons brand;

●     Morrisons will continue to supply food and groceries across the 337 petrol forecourts with the opportunity to expand its supply across the MFG estate over the medium term through its fast-growing wholesale operation;

●     Installing Ultra-Rapid EV charging infrastructure across the property acquired by MFG, with MFG currently targeting the installation of 800 Ultra-Rapid 150kW EV chargers, in hubs, within the first five years following completion of the transaction (these chargers can add 100 miles of range in approximately 10 minutes);

●     A focus on the retail environment, food-to-go and valeting offers to customers, with the potential for the introduction of MFG's food-to-go brand partners to the estate; and

●     Accelerated modernisation of the Morrisons branded petrol filling stations estate across the UK.

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

Every Morrisons forecourt colleague will be offered an in-store position. There are not expected to be any compulsory redundancies in connection with the immediate implementation of the transaction, and it is anticipated that over time the transaction will be a significant creator of jobs as MFG and Morrisons start to utilise the growth opportunities created by this opportunity.  

The transaction described above is expected to complete in H1 2024. Completion is subject to and conditional upon the satisfaction (or waiver) of certain customary conditions, requirements and approvals.

Rami Baitiéh, CEO of Morrisons, said:

"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. We are delighted to have such a strong partner in MFG and look forward to the opportunities a combined MFG and Morrisons forecourt offering will provide." 

About Morrisons:

Headquartered in Bradford since 1899, Morrisons is a British food retailer with more than 91,000 colleagues in approximately 500 supermarkets, and 1,250 convenience stores, including almost 1,000 Morrisons Dailys. We are British farming's single biggest direct customer with all Morrisons branded fresh meat and everything on our butchers' counters being 100% British. Foodmakers and shopkeepers are at the heart of everything we do. See also our website: https://www.morrisons-corporate.com/

Important Notice:

This announcement contains information that qualified or may have qualified as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"), and it is disclosed in accordance with the Company's obligations under Article 17 of MAR. This announcement is made by Jonathan Burke, Company Secretary of the Company.

This announcement is for informational purposes only and does constitute or form any part of any offer or invitation to sell or issue, or any solicitation of an offer to purchase or subscribe for, any securities of the Company or its group. This announcement is not for publication, distribution or release, directly or indirectly, in or into any jurisdiction in which the publication, distribution or release would be unlawful.

Forward-Looking Statements:

This announcement may contain "forward-looking statements" concerning the Company and its current expectations and projections about future events. Generally, the words "will", "may", "should", "could", "would", "can", "continue", "opportunity", "believes", "expects", "intends", "anticipates", "estimates" or similar expressions identify forward-looking statements. The forward-looking statements involve risks, assumptions and uncertainties (such as the completion of the transactions described in this announcement), including both economic and business risk factors that could cause actual events or results to differ materially from any expected future events or results expressed or implied by these forward-looking statements. The information contained in this announcement is subject to change without notice and, except as required by applicable law, the Company undertakes no obligation or responsibility to update or review any forward-looking statements whether as a result of new information, future events or otherwise. Readers should not place undue reliance on forward-looking statements, which speak only as at the date of this announcement

 

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