Australia's competition regulator, the Australian Competition and Consumer Commission (ACCC), will review the proposed sale of Woolworth's 527 service stations and 16 committed development sites to BP for A$1,785m (US$1,338m). Under the terms of the transaction, the existing discount on fuel would be continued for a minimum 10-year period and would be equally funded over this period.
The sale was announced in December 2016 and is part of Woolworth's balance sheet strengthening strategy as the grocer aims to focus on its core business. The transaction is subject to customary closing conditions (including BP obtaining Australian Competition and Consumer Commission (ACCC) and Foreign Investment Review Board (FIRB) approval). Completion is expected to occur no earlier than January 2018.
BP is one of the largest suppliers of fuel to Australia’s industrial and commercial sector. The group already owns 350 BP branded fuel and convenience retail sites across Australia; an additional 1,050 fuel and convenience stores are branded BP but owned by independent business partners.