THE Co-operative Group has sold its petrol business to Asda.

The move means that the Prudhoe Co-op garage will be taken over by the supermarket chain in a combined deal worth £600 million.

The Prudhoe branch joins 129 other forecourt sites across the UK being sold.

Sale of non-core petrol forecourt business enables Co-op to focus on core convenience, it has said.

The proceeds from the sale of will be used to:

  • Reinvest into Co-op’s leading core convenience business centred around its retail estate, as well as its growing wholesale, franchise and e-commerce operations, including new convenience stores in the heart of more communities
  • Invest in Co-op’s pricing, store operations, technology, and logistics
  • Support the reduction of Co-op’s net debt

Shirine Khoury-Haq, chief executive at Co-op, 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.”

The transaction is due to be completed in the final quarter of the year. 

Asda has said that around 2,300 colleagues currently employed in Co-op stores will transfer to Asda’s employment under TUPE transfer.

Mohsin Issa, co-owner of Asda, added: “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.

“We look forward to welcoming the Co-op colleagues to this new part of our business after we complete the transaction and due processes in the coming months.”