Asda seals £600 million deal to takeover 132 Co-op petrol forecourts across the UK

Asda has legally completed its takeover of 132 Co-op sites across the UK in a deal worth approximately £600 million.

The supermarket said the deal is part of its plans to rapidly grow into the convenience market, and will see 2,300 workers move over from the Co-op to the supermarket group. The deal was first announced by Asda in August 2022, but still remains subject to regulatory approval from the Competitions and Marketing Authority (CMA).

The purchase includes 129 retail stores, with attached petrol stations, and three development sites. Each store is between 1,500 and 3,000 square feet in size but the stores will remain separate from Asda while the CMA conducts its enquiry into the deal.

The new focus in forecourts and convenience stores comes after Asda’s £6.8 billion takeover by the billionaire Issa brothers and private equity backers TDR Capital, who also own the EG Group forecourt giant.

The supermarket has confirmed that all 2,300 employees from the Co-op will be moved over to Asda. The deal has a cash value of £438 million, but a total value of around £600 million inclusive of lease liabilities.

The Co-op said proceeds from the sale will be reinvested into its core convenience shops, pricing, stores operations and reducing its debt burden. The UK competition watchdog is expected to look into the acquisition.

Asda said the CMA has already issued an initial enforcement order, meaning the Co-op sites must remain separate until any probe is completed - a process which is likely to “take until mid-2023”.

Mohsin Issa, co-owner of Asda said: “We are delighted to formally complete the transaction that we announced in August and taking the next step on our journey to creating a new and exciting part of our Asda business.

“As millions of families deal with the day-to-day impacts of increasing costs of living, we’re committed to bringing Asda’s great value groceries and fuel to even more communities across the UK through these new stores.

“Over the last five years we’ve been consistently ranked as one of the cheapest providers of fuel in the UK and have been voted the Grocer’s best priced supermarket for 25 years in a row – meaning customers in these communities can look forward to saving millions annually on the cost of filling their shopping trolleys and tanks when Asda comes to town.

“We look forward to working collaboratively with the CMA on their investigation and to welcoming our new Asda colleagues to our great business in the coming months.”