09/11/2018 - 15:40

Woolies sells fuel stations in $1.7bn deal

09/11/2018 - 15:40

Bookmark

Upgrade your subscription to use this feature.

Woolworths has announced the sale of its 540 petrol stations to UK-based EG Group for $1.73 billion, months after BP pulled out of a deal to buy the fuel business.

Woolies sells fuel stations in $1.7bn deal
Woolworths has 540 petrol stations in Australia.

Woolworths has announced the sale of its 540 petrol stations to UK-based EG Group for $1.73 billion, months after BP pulled out of a deal to buy the fuel business.

EG operates about 4,700 sites across Europe and North America, with more than 28,000 employees globally.

As part of the transaction, Woolworths and EG have entered into a 15 year commercial alliance covering fuel discount redemption, loyalty and wholesale product supply.

All existing Woolworths Petrol management and operations teams will transfer to EG Group following completion of the sale.

The deal comes after the competition watchdog blocked a planned $1.8 billion purchase planned by BP in August last year.

Woolworths chief executive Brad Banducci said the transaction was a positive for consumers and the company.

“The agreement will continue to strengthen the opportunities our customers have for greater value when shopping with us, with the benefits of the Woolworths Rewards program and the fuel discount offer set to continue,” he said.

“A long-term wholesale food supply arrangement will also ensure that EG Group can benefit from competitive product sourcing, including Woolworths’ own brands, to provide a world class convenience offer that will add further scale to Woolworths FoodCo.”

EG Group founder Mohsin Issa said the deal was an exciting international milestone.

“We are the leading independent petrol forecourt retailer in Europe and are having great success in the US,” he said.

“The Woolworths’ assets present a fantastic opportunity to further grow our international footprint and deliver our best-in-class retail experience in a new geography.

“We are committed to investing in the site network, introducing leading retail brands, developing the alliance with Woolworths and working with the exceptional management team.”

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options