BP to buy Australia’s Woolworths fuel business for $1.3 billion
Linus Unah – Fourth Estate Contributor
Sydney, Australia (4E) – British energy company BP said Wednesday that it will buy the fuels business of Woolworths, one of Australia’s largest supermarket retailers, for $1.3 billion.
The agreement includes BP acquiring, rebranding and operating Woolworths’ existing 527 gas stations and 16 development sites.
Woolworths chief executive Brad Banducci said in a statement that the deal would help the company to strengthen its balance sheet and pump more money into its core supermarkets business.
“Globally we have developed a winning retail formula where we partner with strong local brands, like Marks & Spencer in the UK, to provide our customers with a convenience retail offer that meets the needs of their busy lifestyles,” BP downstream chief executive Tufan Erginbilgic said in a separate statement.
“The combination of all aspects of this strategic partnership is expected to create significant value for BP.”
The acquisition of Woolworths’ fuel and convenience sites will add to BP’s existing network of 350 company-owned retail sites across Australia.
BP also supplies fuel and branding to a further 1,000 sites owned by independent business partners.
The transaction is subject to regulatory approval and is expected to be completed within a year.
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