The transaction includes 129 petrol forecourt sites, spread across the UK and represents 5% of Co-op’s retail estate of 2,564 stores.
Recently appointed Shirine Khoury-Haq, the Chief Executive at the Co-op Chief Executive at the Co-operative Group 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.”
The transaction is due to complete in Q4 2022, although the acquisition is subject to review by the Competition & Markets Authority (CMA).
The co-op has stated that its primary focus is on developing further its leading core convenience proposition, and the proceeds from the sale of its relatively small non-core petrol forecourt business, will be used to:
· Reinvest into Co-op’s leading core convenience business centred around its retail estate, as well as its growing wholesale, franchise and e-commerce operations, including new convenience stores in the heart of more communities
· Invest in Co-op’s pricing, store operations, technology, and logistics
· Support the reduction of Co-op’s net debt