Hundreds of EV charging points are set to be placed in Morrisons-branded petrol forecourts following the acquisition – announced on 30 January – of 337 sites by Motor Fuel Group (MFG).
MFG said the deal, which includes fuel and convenience retail kiosk and ancillary services, will enable it to expand its rapid EV charging infrastructure. The Morrisons brand will remain at the acquired forecourts.
The proposed £2.5 billion transaction will see Morrisons take a minority stake of circa 20% in MFG, and enter into commercial and supply agreements with the fuel group. Both companies are majority owned by US private equity firm Clayton, Dubilier and Rice, which completed its £7 billion acquisition of Morrisons in 2021.
In a joint statement issued on Tuesday, the businesses said the 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”. It comes as EV charging looks like being one of the new UK grocery battlegrounds – with 2,400-plus chargers at Tesco sites across the UK already and Sainsbury’s launching its own EV charging venture last month.
Morrisons claimed the proceeds of the forecourts sale will fund further investment in its grocery and food-making businesses, as well as significantly strengthening the business’s capital structure.
MFG operates a different model to Morrisons with staff employed directly by the franchise holder. With this deal, Morrisons has guaranteed forecourt employees will be provided with an in-store position on the same pay and employment terms. In nearly all circumstances this position will most likely be in the store to which the forecourt is attached, according to the retailer.
There will be no compulsory redundancies, it added.
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 the deal was “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”.
Referencing the ongoing transition from fossil fuel dependency to a low-carbon economy, which will see a ban on all new diesel cars by 2035, he added: “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.”
[Image credit: Morrisons]
