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/
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