The Co-op has sold its petrol station business to supermarket giant Asda for £600 million, the firm revealed on Wednesday, stating that the transaction will free up cash and improve its financial standing.

The group has stated that the transaction will be finalized by the end of the year.

The transaction includes 129 gas station forecourts across the nation, which represents 5% of Co-entire op’s retail portfolio of 2,564 shops.

The company stated that the sale would permit it to concentrate on its core retail business, including the construction of new convenience shops, as well as the expansion of its wholesale, franchise, and e-commerce activities.

The Co-op stated that it expected the transaction to close in the fourth quarter of this year and that it would reduce its debt levels and strengthen its balance sheet.

“This sale is consistent with our goal to move away from operating fuel forecourts and supports our aim of Co-operating for a fairer society while expanding our core leading convenience business,” said Co-op CEO Shirine Khoury-Haq.

She stated, “I would like to thank our outstanding employees in these stores, and we will work closely with Asda to guarantee a seamless transition.”

Mohsin Issa, co-owner of Asda, commented: “We have always been clear about our desire to grow Asda, and we are ecstatic to build this new and distinct section of our business, which will allow us to provide Asda value in gasoline and groceries to even more consumers and communities in the United Kingdom.

“We view convenience as a big commercial growth opportunity.

This acquisition accelerates our approach in this area and contributes to our long-term goal of becoming the second-largest supermarket in the United Kingdom.