The Co-op Group said the forecourts it is selling make up five percent of its retail estate of 2,564 stores.
Asda will pay £438million in cash and take on around £162million of lease liabilities as part of the deal, with the final amount set to be confirmed on completion later this year.
Known for its supermarket chains and funeral care operations, Co-op said that offloading its petrol forecourts will allow it to focus on its convenience business as well as raising important cash for the business.
Asda will expand significantly after the sale is completed
Rui Vieira
Cash generated from the sale will go towards funding new convenience stores in the heart of more communities, and reducing its net debt, the Co-op said.
Around 2,300 Co-op staff who work across the sites being sold, will transfer over to Asda once the deal is complete.
Shirine Khoury-Haq, Co-op’s newly-appointed chief executive, said: “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.”
The sale is due to complete in the final three months of 2022.