Asda to acquire 132 Co-op sites in £600m deal

Set to complete by the end of this year, the deal includes 12 convenience store sites in the North West and three in North Wales.

The stores are between 1,500 sq ft and 3,000 sq ft and come with attached petrol filling stations. There are five exceptions to this: two sites, both in Scotland, will only have their fuel kiosk sold and three sites are still under development. The development areas are located in London, Horncastle and Wool.

The sale of 132 sites represents 5% of Co-op’s real estate portfolio. Co-op said the sale of its petrol forecourt estate would enable it to focus more on its core convenience store properties and reduce the company’s net debt. The money will also go towards investments in technology, logistics and store operations, according to Co-op.

Rothschild & Co provided financial advice to Co-op on the Asda deal, which is valued at £600m and includes a cash consideration of £438m. Addleshaw Goddard was the principal legal advisor.

Shirine Khoury-Haq, the Co-op’s chief executive, said: “This transaction is in line with our strategy to move away from operating petrol forecourts and supports our vision of co-operating for a fairer world while building our core leading convenience business.

“I would like to thank our incredible colleagues in these stores, and we will work closely with Asda to ensure a smooth transition.”

Mohsin Issa, co-owner of Asda, said the acquisition was part of his strategy for the supermarket since acquiring the brand last year.

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.”

The North West locations included in the sale are as follows:

• Petrol Bradfield Road in Crewe
• Petrol Chorley in Chorley
• Petrol Clitheroe in Barrow Clitheroe
• Petrol Cross Hillocks in Manchester
• Petrol Handbridge – Queen’s Park Rd in Chester
• Petrol Holmes Chapel in Crewe
• Petrol Hopwood in Heywood
• Petrol Lindow in Wilmslow
• Petrol Marple in Stockport
• Petrol Princess Parkway in Manchester
• Petrol Saxon Cross in Sandbach
• Petrol Three Peaks in Carnforth

 The North Wales sites are:

• Petrol Coedpoeth – New in Wrexham
• Petrol Old Colwyn in Colwyn Bay
• Petrol Rhuddlan in Rhuddlan