Asda set to take over three petrol stations in the South Hams

Asda has confirmed its plans to buy 132 convenience stores with filling stations from The Co-operative in a deal worth £600million.

Three Co-operative filling stations exist in the South Hams currently - in Kingsbridge, Malborough and Plympton.

Asda announces the move as part of its "growth strategy" to move into the "convenience market and bring Asda value to more local communities". 

The circa 2,300 colleagues currently employed 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.”

The purchase includes 129 established, high-quality sites with a grocery retail store of between 1,500 and 3,000 square feet 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 transaction is subject to normal conditions and will be financed through a combination of existing cash resources and bank finance.

The transaction has a total value of approximately £600m, inclusive of IFRS16 lease liabilities of approximately £162m (final amount to be confirmed on completion).