Murco has signed a £200m deal to sell its retail business, including 228 forecourt sites it owns, to Top 50 Indies forecourt operator Motor Fuel Group (MFG).

The deal has been carried out with the support of private equity group Patron Capital Partners and oil industry veteran Alasdair Locke, who acquired MFG in a joint venture with a new management team in December 2011.

The transaction is scheduled to close no later than September 30, 2014.

Commenting on the agreement, Jeremy Clarke, managing director at MFG, said: “We are delighted with this exciting transaction. The signing of this agreement supports our stated objective to grow Motor Fuel Group into a significant force in the UK forecourt sector.”

MFG currently operates 60 stations throughout the UK, operating primarily under the BP and Jet fuel brands, with Costcutter shops.

The acquisition of Murco will add another 228 company stations to the MFG network and a network of more than 200 dealers to the group. All of these stations will continue to offer fuel under the Murco brand. The forecourt shops on the Murco company station network also operate under the Costcutter brand.

The PRA welcomed the news of the deal. Chairman Brian Madderson appeared on BBC TV Wales commenting on the latest developments and said: “The agreement between MFG and Murco provides much certainty in the UK forecourt sector.

“These service stations have been on the market for a while now and the acquisition of Murco will firmly anchor MFG in the top five UK Independent fuel retail groups and brings with it a significant dealer network too.

“We at the PRA look forward to continuing to support MFG and their newly-enlarged network of sites.”