REG - Wm Morrison Sprmkts - Sale of Petrol Forecourts
30/01/2024 15:15
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RNS Number : 4064B Wm Morrison Supermarkets Limited 30 January 2024
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED.
For immediate release
30 January 2024
MORRISONS ANNOUNCES MFG TO ACQUIRE 337 MORRISONS FORECOURTS IN DEAL WORTH
£2.5BN AS MORRISONS TAKES A MINORITY STAKE IN MFG
WM MORRISON SUPERMARKETS LIMITED (the "Company" and, together with certain
affiliates, "Morrisons") announces that it has entered into an agreement
relating to the proposed acquisition by Motor Fuel Group (together with
certain affiliates, "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, in exchange for £2.5bn (the consideration to be in the form of
cash and equity instruments).
The proposed £2.5bn transaction forms a new strategic partnership between the
two companies. As part of the transaction, Morrisons will also take a minority
stake of approximately 20% equity interest in MFG, and enter into commercial
and supply agreements with MFG, underscoring the long-term nature of the
partnership.
The proposed transaction will create synergies across fuel, retail and
ancillary services, scale advantages and growth opportunities across the new
entity. 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 UK Government strives to meet its 2050 net zero target. The
transaction further underpins Morrisons' convenience growth strategy.
The benefits of the transaction include:
● Leveraging the price benefits of bulk fuel purchases to support a
compelling fuel value proposition for customers. Value-for-money supermarket
fuel will remain the offering on forecourts that will retain the Morrisons
brand;
● Morrisons will continue to supply food and groceries across the
337 petrol forecourts with the opportunity to expand its supply across the MFG
estate over the medium term through its fast-growing wholesale operation;
● Installing Ultra-Rapid EV charging infrastructure across the
property acquired by MFG, with MFG currently targeting the installation of 800
Ultra-Rapid 150kW EV chargers, in hubs, within the first five years following
completion of the transaction (these chargers can add 100 miles of range in
approximately 10 minutes);
● A focus on the retail environment, food-to-go and valeting offers
to customers, with the potential for the introduction of MFG's food-to-go
brand partners to the estate; and
● Accelerated modernisation of the Morrisons branded petrol filling
stations estate across the UK.
For Morrisons, the proceeds of the sale will fund further investment in the
grocery and food making businesses, as well as significantly strengthening the
Company's capital structure.
Every Morrisons forecourt colleague will be offered an in-store position.
There are not expected to be any compulsory redundancies in connection with
the immediate implementation of the transaction, and it is anticipated that
over time the transaction will be a significant creator of jobs as MFG and
Morrisons start to utilise the growth opportunities created by this
opportunity.
The transaction described above is expected to complete in H1 2024. Completion
is subject to and conditional upon the satisfaction (or waiver) of certain
customary conditions, requirements and approvals.
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."
About Morrisons:
Headquartered in Bradford since 1899, Morrisons is a British food retailer
with more than 91,000 colleagues in approximately 500 supermarkets, and 1,250
convenience stores, including almost 1,000 Morrisons Dailys. We are British
farming's single biggest direct customer with all Morrisons branded fresh meat
and everything on our butchers' counters being 100% British. Foodmakers and
shopkeepers are at the heart of everything we do. See also our website:
https://www.morrisons-corporate.com/ (https://www.morrisons-corporate.com/)
Important Notice:
This announcement contains information that qualified or may have qualified as
inside information for the purposes of Article 7 of the Market Abuse
Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018, as amended ("MAR"), and it is disclosed
in accordance with the Company's obligations under Article 17 of MAR. This
announcement is made by Jonathan Burke, Company Secretary of the Company.
This announcement is for informational purposes only and does constitute or
form any part of any offer or invitation to sell or issue, or any solicitation
of an offer to purchase or subscribe for, any securities of the Company or its
group. This announcement is not for publication, distribution or release,
directly or indirectly, in or into any jurisdiction in which the publication,
distribution or release would be unlawful.
Forward-Looking Statements:
This announcement may contain "forward-looking statements" concerning the
Company and its current expectations and projections about future events.
Generally, the words "will", "may", "should", "could", "would", "can",
"continue", "opportunity", "believes", "expects", "intends", "anticipates",
"estimates" or similar expressions identify forward-looking statements. The
forward-looking statements involve risks, assumptions and uncertainties (such
as the completion of the transactions described in this announcement),
including both economic and business risk factors that could cause actual
events or results to differ materially from any expected future events or
results expressed or implied by these forward-looking statements. The
information contained in this announcement is subject to change without notice
and, except as required by applicable law, the Company undertakes no
obligation or responsibility to update or review any forward-looking
statements whether as a result of new information, future events or otherwise.
Readers should not place undue reliance on forward-looking statements, which
speak only as at the date of this announcement
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