Asda has agreed a deal to buy 129 petrol stations and three development sites from the Co-operative group. It is part of a deal that is worth around £600million.
The sale will see around 5% of Co-ops entire retail estate - including 129 petrol stations and three development sites - handed over to Asda. The supermarket already runs 230 petrol stations across the United Kingdom.
Co-op, which is best known for its supermarket chains and funeral care operation, says offloading the forecourts will allow it to focus on its convenience store business. It will also raise important funds for the firm.
Asda will pay £438m in cash and take on around £162m of lease liabilities as part of the deal, with the final amount set to be confirmed on completion later this year. The cash will go towards funding new convenience stores in the heart of more communities, and reducing its net debt, the Co-op said.
Around 2,300 Co-op staff who work across the sites being sold will transfer over to Asda once the deal is complete. Shirine Khoury-Haq, Co-op's newly-appointed chief executive, said: "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."
The sale is due to complete in the final three months of 2022.
