The Co-operative Group (Co-op) has announced it is selling its petrol forecourt business to Asda for £600 million.

The buyout includes 129 petrol sites across the UK.

The forecourt business currently makes up five per cent of Co-op’s total retail estate of 2,564 stores.

Sources at Sky News had originally estimated the purchase would cost Asda £450 million.

Co-op said that proceeds from the sale will be used to: reinvest into its core convenience business; fund its pricing, store operations, technology, and logistics; and help reduce the company’s debt.

“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,” said Shirine Khoury-Haq, the recently appointed chief executive of Co-op. “I would like to thank our incredible colleagues in these stores, and we will work closely with Asda to ensure a smooth transition.”

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