The Co-operative Group said on Wednesday it had agreed to sell its petrol forecourt estate to supermarket rival Asda for £600 million.
The transaction includes 129 sites, representing 5 per cent of Co-op’s retail estate of 2,564 stores.
The mutually owned Co-op said it would use the proceeds of the sale to invest in its core convenience stores business and reduce its net debt.
“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,” Shirine Khoury-Haq, group chief executive at the Co-op, said.
Asda is owned by Issa brothers, Mohsin and Zuber, and private equity firm TDR Capital, who also jointly own leading forecourt business EG Group.
EG Group has in October last year divested 27 petrol stations to Park Garage Group, after the Competition and Markets Authority has ruled that the Asda takeover by EG Group owners could lead to higher petrol prices in some parts of the country.