MFG to convert sites to Morrisons Daily as part of £2.5bn deal

Motor Fuel Group (MFG) is to convert some of its sites to the Morrisons Daily franchise, following a £2.5bn deal between the two firms, sources have told Better Retailing.

The forecourt giant announced on 30 January that it had entered into an agreement to buy 337 petrol stations from the supermarket. Morrisons will also have a 20% stake in MFG under the deal. Both companies are majority owned by US private equity firm Clayton Dubilier & Rice (CD&R).

Better Retailing understands MFG will also convert its sites to Morrisons Daily branding as part of a supply deal between the pair.

Sources told Better Retailing Morrisons Daily franchisees had received notification from the supermarket informing them of the change.

One source, who asked not to be named, raised concerns about competition. They said: “There’s an MFG forecourt near me. We’re part of the same brand, but I’ll have rivalry near me nonetheless.”

Another added it was still too early to consider any potential impact.

Christie & Co managing director (retail) Steve Rodell said the decision for MFG to convert its sites to Daily was “sensible” as part of its ownership of a “large supermarket brand.”

In a statement about the £2.5bn deal, MFG said the acquisition would see it offer “value-for-money” supermarket fuel alongside “Significant investment to expand and improve the convenience retail proposition, with a focus on enhancing the retail environment, food-to-go and valeting facilities to customers.”

It added: “Morrisons will continue to supply food and groceries across the 337 Morrisons petrol forecourts with the opportunity to expand its supply into the MFG estate over the medium term through its fast-growing wholesale operation.”

Morrisons and MFG have been approached for further comment.

A previous version of this article suggested Londis and Budgens stores within the MFG network would be affected by the changes. This is not the case. Better Retailing apologies for any confusion and inconvenience this may have caused.