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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.
Read more: Competition regulator looking into £7bn takeover of supermarket chain
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.
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The investor also owns Majestic Wine, the specialist retailer, and is…
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Source : skynews
