Morrisons | Supermarkets - comment
The transaction would reduce leverage at Morrison if approved. This £2.5bn (EV basis) fuel forecourt deal is the opposite of the EG/ASDA deal. CD&R-owned Motor Fuel Group (MFG) would buy Morrisons 340 sites. CD&R owns both Morrisons and MFG, and the Competition Authority (CA) made CD&R sell 87 stations as part of its acquisition of Morrisons. Unless CD&R disposes of one of Morrisons/MFG, the CA will undoubtedly require some disposals as part of the disposal process. CD&R had considered a sale of MFG in 2022, but economic headwinds stopped the deal. The MFG Sale could be revived as the UK economy recovers.