Asda to buy Co-op's petrol forecourt business in £600m deal
Asda confirmed on Wednesday that it has agreed to buy Co-op’s petrol forecourt estate for around £600m.
Asda will pay £438m in cash for the acquisition, plus lease liabilities of around £162m.
The supermarket chain said the deal - which includes 132 sites - is part of its growth strategy to move into the convenience market and bring "Asda value" to more local communities.
The purchase includes 129 established sites with a grocery retail store of between 1,500 and 3,000 square feet and attached petrol filling station, and three development sites.
The circa 2,300 colleagues currently employed in the Co-op stores will transfer to Asda’s employment following completion and after a transition period.
Asda co-owner Mohsin Issa said: "We have always been clear in our ambition to grow Asda and are hugely excited to create this new and distinct part of our business, giving us the opportunity to bring Asda value in fuel and groceries to even more customers and communities across the UK.
"We see convenience as a significant growth opportunity for the business. This acquisition accelerates our strategy in this area and forms part of our long-term ambition to become the UK’s second largest supermarket."