Caltex cleared to buy Gull

SYDNEY: Fuel retailer Caltex Australia has received regulatory approval to buy Gull New Zealand in an approximately $NZ325 million deal as part of its plan to increase its retail business.

Caltex said yesterday it expected the takeover of NZ’s leading biofuel retailer would be completed by July 3 after the New Zealand Overseas Investment Office gave its consent.

The deal would be funded through a combination of existing and new bank debt arrangements and was expected to be earnings per share accretive by the end of its first full year of operation under Caltex, the company said.

The purchase comes less than seven weeks after the petrol supplier completed its takeover of Milemaker Petroleum’s fuel retail business assets in Victoria.

The $95 million deal covers 46 Milemaker service stations in Melbourne.

Caltex chief executive Julian Segal said earlier in May the Milemaker acquisition and Caltex’s Gull New Zealand takeover were part of the company’s plan to mitigate the impact of losing its 13year alliance with Woolworths when BP struck a $1.79 billion deal with the supermarket giant last December.

Mr Segal also said the purchases would help transform Caltex from being just a transport fuels provider to being a larger convenience retail offering. — AAP