For Sale: Woolworths’ $1 billion petrol station network

By Harry Allan

Australian supermarket Woolworths announced that it is considering offers to buy its petrol stations in a deal worth more than $1 billion.

This comes as part of a wider asset sell off which the company is hoping will enhance its grocery chain stores which have been undergoing a number of changes in recent years. New Woolworths Chief Executive Officer Brad Banducci is refocusing efforts on developing the grocery side of the business, as part of a pricing war with Coles

Caltex Australia Ltd, the co-owner of the chain, had hired investment bank UBS to help secure a deal valued at A$1.5 billion ($1.14 billion).

Last month said it would close its Master's hardware chain after years of loss making.

The potential sale covers over 500 Woolworths service stations and also comes at a time when the time when the oil price depression is beginning to affect businesses that are not affiliated with the industry.

Editor’s Comment:

While many will see Woolworths’ most recent sale as a sign of defeat, the real picture is more mixed. While the move is in response to competitive pressure, the selloff will remove a portion of the company’s operations that aren’t turning a profit.

What remains to be seen will be if Woolworths can make its remaining businesses compete in the increasingly hostile retail economy. 

Business Review Australia & Asia's September issue is live. 

Follow @BizReviewAU and @MrNLon on Twitter. 

Business Review Australia is also on Facebook. 

SOURCE: [Reuters]


Featured Articles

Hybrid live event shaping the future of Sustainability & ESG

Sustainability LIVE London returns for a two-day, multi-track conference programme featuring inspirational ESG speakers, debates and discussions

Nine must-attend sustainability events for business leaders

From London to Abu Dhabi, Singapore to San Diego, these sustainability-focused events are designed to help business leaders action their ESG goals

Daniel Weise of BCG on new supply chain and procurement book

Daniel Weise, global leader of Boston Consulting Group’s procurement business line, on the timely publication of his new book, Profit From The Source

Attract and retain talent with flexible working and benefits

Human Capital

Nurturing the next generation of women leaders in Africa

Leadership & Strategy

5 Mins With: Cybersecurity expert Ariel Parnes of Mitiga