Woolworths, BP cancel $1.8bn petrol station deal

Woolworths, Australia's largest supermarket operator, has announced that it has decided to cancel its AUD$1.8bn sale of its petrol station assets to British Petroleum.

Woolworths has taken the decision after the deal was blocked by Australian regulatory authorities, citing that the sale could lead to higher fuel prices across Australia.

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However, the move does not indicate a complete abandonment of any potential sale of the assets, with Woolworths stating that it would still look to pursue other options for its 16 development sites and 527-owned petrol stations.

“As previously announced, Woolworths Group is continuing to engage actively with alternative options for its Petrol business,” Woolworths said.

The announcement marks the end to talks that have been ongoing between BP and Woolworths since December 2016.

“Despite its best efforts, BP has determined the transaction cannot be structured to meet its strategic objectives,” BP said.