The Co-op has sold 129 petrol forecourt sites across the UK to Asda for a reported £600m.
The sale represents 5% of Co-op’s retail estate of 2,564 stores.
Asda say the petrol stations, which include grocery retail stores, will be rebranded in a new convenience store format for the supermarket chain.
Co-op say they will use the proceeds from the sale to reduce the company’s debt and grow its core grocery business.
Shirine Khoury-Haq, Chief Executive at the Co-op comments: “This transaction is in line with our strategy to move away from operating petrol forecourts and supports our vision of Co-operating for a fairer world while building our core leading convenience business.
“I would like to thank our incredible colleagues in these stores, and we will work closely with Asda to ensure a smooth transition.”
Mohsin Issa, Co-owner of Asda, said: “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.
“We see convenience as a significant growth opportunity for the business. This acquisition accelerates our strategy in this area and forms part of our long-term ambition to become the UK’s second largest supermarket.
“We look forward to welcoming the Co-op colleagues to this new part of our business after we complete the transaction and due processes in the coming months.”
Asda currently has 320 petrol stations across the UK. It was bought by the Issa brothers in February 2021 who also co-own the petrol station operator EG Group.
The Co-op Group has sold a number of its businesses over recent years, including its chain of pharmacies and travel shops.
(Lead image: Co-op)
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