London Daily

Focus on the big picture.
Monday, Jul 14, 2025

Spurned Morrisons suitor Fortress plots £5bn takeover of petrol stations giant MFG

Spurned Morrisons suitor Fortress plots £5bn takeover of petrol stations giant MFG

Fresh from the purchase of Punch Pubs, SoftBank-owned Fortress Investment Group is lining up its latest acquisition of a major UK company.

An American investment giant is plotting a £5bn takeover of Motor Fuel Group (MFG), Britain's biggest independent operator of petrol forecourts.

Sky News has learnt that Fortress Investment Group is drawing up plans to bid for MFG after losing out in a hotly contested auction of Wm Morrison, the supermarket chain, last year.

By coincidence, MFG is currently owned by Clayton Dubilier & Rice (CD&R), the private equity firm which eventually bought Morrisons in a deal worth about £7bn.

The auction of MFG is yet to formally get underway, and sources close to the prospective process said that Fortress would be only one of a significant number of parties that would examine bids for it.

MFG has grown through a series of acquisitions to become the largest independent player in the sector, behind BP and Shell.

A merger of its assets with Morrisons' petrol stations was mooted by City analysts at the time of the supermarket chain's takeover, but the prospect of that transaction is thought to have receded after a £750m deal for EG Group to buy Asda's forecourts was abandoned in October.

Asda and EG Group are both controlled by TDR Capital and Mohsin and Zuber Issa.

A bid for MFG from Fortress would make sense given the SoftBank-owned investor's continuing interest in British-based companies.

After seeing its Morrisons bid outgunned by CD&R, Fortress managing partner Joshua Pack said: "The UK remains a very attractive investment environment from many perspectives, and we will continue to explore opportunities to help strong management teams grow their businesses and create long-term value."

In December, Fortress confirmed a Sky News report that it was buying Punch Pubs, one of Britain's biggest pub chains, in a deal worth close to £1bn.

The investor also owns Majestic Wine, the specialist retailer, and is particularly interested in owning businesses with strong underlying real estate assets.

Fortress is said to be lining up advisers to work on a bid for MFG, although it is not certain to table a formal offer.

The American firm has extensive knowledge of the fuel retailing sector, having owned United Pacific, the largest independent petrol forecourt station operator in the western US, for nearly a decade.

CD&R has owned MFG since 2015, and recently picked a quartet of banks to oversee the company's sale.

Citi, Deutsche Bank, Goldman Sachs and Royal Bank of Canada will work jointly on the process, with a stock market listing possible but considered far less likely.

MFG has been striving to position itself at the heart of the drive to electrify Britain's automotive industry, and has committed to spending £50m this year on installing 350 rapid vehicle chargers across its estate.

The company has grown substantially since CD&R bought it in 2015 from Patron Capital Partners in a deal worth about £500m.

Three years later, it paid £1.2bn to add MRH, the market leader, creating a group operating under fuel brands such as BP, Esso, Shell and Texaco.

Profits are understood to have risen about tenfold since CD&R's original acquisition of MFG.

Like rivals, it has invested heavily in its convenience retailing proposition, featuring the likes of Costa Coffee, Greggs and Subway at many of its sites.

EG is undertaking a review of its strategic options, while Rontec, the group controlled by the entrepreneur Gerald Ronson, has also been periodically linked with a sale.

MFG's increased focus on electrification could appeal to infrastructure investors who could seek to partner with each other to bid for the company.

A deal could also draw interest from oil companies as they seek new ways to harness the global energy transition.

MFG is run by William Bannister, who acquired the business in 2011 through a management buy-in, while it is chaired by Alasdair Locke, a serial entrepreneur in the energy industry.

Both men would be in line for substantial windfalls from a £5bn sale.

Fortress declined to comment this weekend on its interest in MFG.

Newsletter

Related Articles

0:00
0:00
Close
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
×