Woolies offloads petrol for $1.73b
WOOLWORTHS has struck a deal to sell its petrol station network to a UK retail group for $1.73 billion.
The supermarket giant said yesterday the agreement with EG Group involved 540 sites.
The deal follows the competition watchdog rejecting an earlier attempt by Woolworths to sell its petrol station business to BP for $1.8 billion.
As part of the latest transaction, Woolworths and EG Group have struck a 15-year commercial alliance covering fuel discount dockets, loyalty program points, and the supply of grocery items to the stations.
Woolworths chief Brad Banducci said the supermarket chain’s 4c-a-litre fuel discount would continue to apply across the network following the change of ownership.
Customers will continue to earn Woolworths Rewards points on fuel and merchandise purchases, while the supermarket giant will launch a new wholesale food supply agreement with EG Group.
“This transaction is a positive for our customers, our team, and our shareholders,” Mr Banducci said.
Woolworths expects to get Foreign Investment Review Board approval early next year.
Mr Banducci said Woolworths would consider “a range of options” for the use of the sale proceeds, including returning the cash to shareholders.