The Co-op Group is in talks to sell 130 of its petrol stations for £450m as the business seeks to reduce its debts in anticipation of a potentially severe economic downturn. Bankers at the investment bank Rothschild are understood to be advising the Co-op on a sale, which is probably to a buyer that is already active in fuel retailing, according to Sky News. A spokesperson for Co-op declined to comment. Should the deal go ahead, it will mark the latest in a long line of asset sales by the group, which has sold its pharmacies and travel agents and no longer has a stake in the Co-operative bank, as of 2017. Raising a further £450m would help tackle the group’s net debt, which soared to £920m, according to its last set of results, up from £695m in 2019 and £550m in 2020. A deal would also extend the period of flux in the ownership of Britain’s network of more than 8,000 petrol stations, owing to their place in multibillion-pound takeovers of UK supermarkets. In June, the Competition and Markets Authority accepted a proposal from Clayton, Dubilier & Rice, a US private equity firm, to sell 87 forecourts as a condition of its takeover of Morrisons. CD&R has since sought a buyer for its Motor Fuel Group (MFG), which it values at about £5bn, but has struggled to garner interest amid the uncertain economic outlook. MFG is the UK’s largest independent petrol station operator, with about 900 forecourts. Last year, the billionaire petrol station tycoons the Issa brothers agreed to sell 27 of their forecourts to allay the competition watchdog’s concerns and secure their £6.8bn takeover of Asda. The petrol retail industry has come under increased scrutiny, with record prices for diesel and petrol this year triggering accusations of profiteering. In June, the business secretary, Kwasi Kwarteng, asked the CMA to urgently review petrol station operators, amid concerns retailers have not passed on the recent cut to fuel duty.