Morrisons Forms £2.5 Billion Gas Station Alliance With MFG

  • Both companies are owned by PE firm Clayton Dubilier & Rice
  • Deal will help UK grocer Morrisons reduce its debt load
A Morrisons petrol station in London.Photographer: Betty Laura Zapata/Bloomberg
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Wm Morrison Supermarkets Ltd. is taking a minority stake in Motor Fuel Group and selling it hundreds of gas stations and electric-vehicle charging sites in a £2.5 billion ($3.2 billion) transaction.

The British grocer said the strategic partnership between the two companies, both owned by US private equity group Clayton Dubilier & Rice, would create the largest independent petrol forecourt operator in the UK. The deal will also help Morrisons reduce its substantial debt pile following CD&R’s leveraged take-private deal for the supermarket.