UK’s EG Group to acquire Woolworths’ petrol unit for $1.7bn
Woolworths announced on 9 November that it agreed to sell its petrol business to EG Group for AUS$1.725bn (US$1.25bn).
The 540 fuel convenience sites will be owned by the UK-based petrol retailer, which currently operates 4,700 sites across Europe and North America.
“This transaction is a positive for our customers, our team and our shareholders,” stated Brad Banducci, CEO of Woolworths Group.
“The agreement will continue to strengthen the opportunities our customers have for greater value when shopping with us, with the benefits of the Woolworths Rewards program and the fuel discount offer set to continue.”
“A long-term wholesale food supply arrangement will also ensure that EG Group can benefit from competitive product sourcing, including Woolworths’ own brands, to provide a world class convenience offer that will add further scale to Woolworths FoodCo.”
Under the agreement, the firms have entered a 15-year commercial alliance covering fuel discount redemption, loyalty and wholesale product supply.
“For the past 17 years, we have had a vision of becoming a leading petrol station/convenience store operator around the world. This is another exciting international milestone on our growth journey,” noted Mohsin Issa, Found and co-CEO of EG Group.
“We are the leading independent petrol forecourt retailer in Europe and are having great success in the US. The Woolworths’ assets present a fantastic opportunity to further grow our international footprint and deliver our best-in-class retail experience in a new geography.”
“We are committed to investing in the site network, introducing leading retail brands, developing the alliance with Woolworths and working with the exceptional management team.”