Asda to acquire 132 c-stores from The Co-op for £600mn
Acquisition will create a new and distinct format for Asda in the British convenience market.
Asda has agreed to acquire 132 petrol stations from The Co-operative Group (Co-op) for a total value of £600 million (€698mn), as 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. They are located across the UK and will create a new and distinct format for Asda in the convenience market.
The circa 2,300 colleagues currently employed in the Co-op stores will transfer to Asda’s employment under TUPE transfer following completion and after a transition period.
“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,” said Mohsin Issa, Co-owner of Asda.
Asda, which already runs 230 petrol stations across the UK, will pay £438 million in cash and take on around £162 million of lease liabilities as part of the deal, with the final amount set to be confirmed on completion later this year.
“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,” added Issa.
The Asda supermarket chain, and its filling stations, were bought in 2021 by the petrol station billionaires Mohsin and Zuber Issa. They currently have 910 in the UK operating under various brands.
