Asda has agreed to acquire 132 sites from The Co-operative Group in a transaction with a cash value of €507m (£438m), as part of its growth strategy to move into the convenience market and bring Asda value to more local communities. The purchase includes 129 established, high-quality sites with a grocery retail store of between 1,500 and 3,000ft² and attached petrol filling station, and three development sites. They are located nationwide and will create a new and distinct format for Asda in the convenience market. The circa 2,300 employees currently working in the Co-op stores will transfer to Asda’s employment under TUPE transfer following completion and after a transition period.
Mohsin Issa, Co-owner of Asda, said: “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.”
