Leeds-based supermarket giant Asda completed its deal to buy Manchester’s Co-op’s petrol forecourt business in a £600m, all-Northern affair.
The supermarket, co-owned by the billionaire Issa brothers and TDR Capital, said 2,300 workers will move over from the Co-op to Asda.
The takeover follows Asda’s £6.8bn takeover by the billionaire brothers and their private equity backer, who also own the EG Group forecourt giant.
In August, the Co-op first revealed plans to sell its 132 petrol stations and attached convenience stores in a bid to bolster its finances.
The Co-op said proceeds from the sale will be reinvested into its core convenience shops, and retail and etail operations, as well as reducing its debt burden. The competition watchdog is expected to look into the acquisition.
The Competition and Markets Authority recently forced Morrisons’ new owner, US private equity firm Clayton Dubilier & Rice (CD&R), to sell off a number of petrol forecourts over competition concerns.
The Co-op sites will continue to operate as separate entities until any probe is completed, which Asda has predicted will take “until mid-2023.”
Mohsin Issa, co-owner of Asda said in a statement: “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.
“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.”
