Morrisons partners with Motor Fuel Group in £2.5bn deal

Motor Fuel Group (MFG) and Morrisons announce that they have entered into an agreement relating to the proposed acquisition by 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.

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

The proposed transaction will create significant synergies across fuel retail and ancillary services, as well as scale advantages and growth opportunities for both businesses. 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 Government strives to meet its 2050 net zero target. 

This level of 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 serving and powering millions of customers a week. MFG will also grow to become the UK’s number two convenience store operator serving communities across the country. MFG has already committed to completing its market leading £400m EV roll out by 2030, and through this partnership intends to electrify approximately 800 sites with thousands of Ultra-Rapid chargers across the combined estate in that timeframe.

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. 

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.” 

William Bannister, CEO of MFG, said, “MFG is proud to be a British entrepreneurial success story that is investing in jobs, critical infrastructure, and serving our communities to help the country achieve its decarbonisation transition. 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. We look forward to working with Morrisons to provide best-in-class charging, refuelling and retail experiences for all our customers.”