Asda is the favourite to buy the Co-op Group’s petrol forecourt business, which includes convenience stores, for approximately £450mln.
Proceeds from the sale would reportedly be used to cut teh Co-op's debt pile and secure capital to invest in digital capabilities at a time when inflation and the worsening economy are hitting trading.
The Manchester-based company, which is best known for its supermarkets and funeral care, has already offloaded several pharmacies and travel shops, while it no longer owns shares in the Co-op bank.
A deal for the roughly 130 petrol forecourt sites, which Rothschild is working on, could be struck this week despite other parties remaining interested in Co-op’s assets, Sky News said.
Asda, which was formerly owned by the giant American company Walmart, is now in the hands of the Issa brothers and TDR Capital, who also control EG Group, one of the biggest independent fuel retailers in Europe.