Eversheds Sutherland advises Morrisons on key elements of its £2.5 billion transaction with Motor Fuel Group

Eversheds Sutherland has advised Morrisons on key aspects of its strategic partnership with Motor Fuel Group (MFG) in a transaction valued at £2.5 billion. 

The transaction involves MFG acquiring 337 petrol forecourts (including fuel, convenience retail, kiosk and ancillary services) and more than 400 sites for ultra-rapid electric vehicle charging development across the UK.

As part of the long-term commercial partnership, Morrisons will take a minority stake of approximately 20% in MFG and enter into commercial and supply arrangements with MFG.

The transaction will create significant synergies across fuel, retail and ancillary services, as well as scale advantages and growth opportunities for both businesses.  It will benefit UK motorists and shoppers at the pump and in store, as well as helping the UK prepare for the end of new diesel and petrol car sales in 2035 as the Government strives to meet its 2050 net zero target.

MFG will invest and install Ultra-Rapid EV charging infrastructure across the sites and is targeting the installation of 800 Ultra-Rapid 150kW EV chargers in the first five years alone. Morrisons will continue to supply food and groceries across the 337 petrol forecourts with the opportunity to expand its supply in the MFG estate through its fast growing whole operation.

Led by real estate partners Elizabeth Cartwright and Phillip Tunney, Eversheds Sutherland advised on the real estate, employment and regulatory aspects of the agreement. The global law firm’s wider team comprised: Partners Jane Southworth, Mark Hammerton, Tom Bray, David Jervis, Andrew Todd and Steve Felstead; Legal Directors Kate Sutton, Rob Bindless, Peter Woods and Tracy Gibson; and Head of Technology for Real Estate, Tom Bennett.

Elizabeth Cartwright, Real Estate Partner, Eversheds Sutherland, commented:

“We are proud to have worked with Morrisons and its other advisors on key aspects of this strategically important transaction. Given the volume of sites and documents and the complexity of the legal interests to be granted, we have used our extensive network to resource this significant transaction using legal technology solutions to streamline and enhance our delivery. Our specialist knowledge of the petrol forecourt and EV charging market has enabled us to act as trusted advisors.”

Andrew Todd, Head of Retail and Wholesale Sub-sector, Eversheds Sutherland, commented:

“We are delighted to have partnered with Morrisons to deliver this strategically important deal. We are proud to count Morrisons as a long-established retail sector client. To the benefit of Morrisons the deal has enabled us to further integrate our market-leading legal technology with the technical legal excellence shown by our teams.”             

Proceeds of the completed sale will enable Morrisons to fund further investment in the grocery and food making businesses and strengthen the business’s capital structure.