Co-op completes sale of petrol forecourt business to Asda
The group announced back in August that it was making the move as it wanted to focus on its core convenience proposition while strengthening its balance sheet.
The transaction includes 129 petrol forecourt sites that have grocery retail shops of between 1,500 and 3,000 square feet, as well as three development sites.
The proceeds from the sale will be reinvested in Co-op’s own convenience business including, pricing, store operations, technology and logistics. They will also be used to reduce net debt.
For Asda, the purchase will create a new and distinct format for its business in the convenience market.
Around 2,300 colleagues currently employed by Co-op will move to Asda’s employment under TUPE transfer in the coming months, following a consultation with USDAW.
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.”