CANBERRA: This follows Caltex Australia’s purchase of the Gull stations in New Zealand. As part of the deal, Woolworths will sell 527 fuel stations and 16 committed development sites. Tufan Erginbilgic, chief executive of BP Downstream, said: “Globally we have developed a winning retail formula where we partner with strong local brands, like Marks & Spencer in the United Kingdom, to provide our customers with a convenience retail offer that meets the needs of their busy lifestyles”. Under the new arrangement BP will eventually supply and sell the fuel. The NRMA too poured its views that it would make sure the competition does not suffers with any divestments being made to BP. Mr Khoury stated: “Our own survey found that four of the 10 cheapest service stations in Sydney were operated by BP franchisees, and we’d be keen to ensure that doesn’t change if this deal goes ahead”.
The deal will also extend the Woolworths Rewards program and reward customers for loyalty and support. Woolworths said it did not expect the deal to be completed until January 2018 at the earliest. “Globally we have developed a winning retail formula where we partner with strong local brands, like Marks & Spencer in the United Kingdom, to provide our customers with a convenience retail offer that meets the needs of their busy lifestyles”.
BP also has similar retailing joint ventures in South Africa, Germany, the Netherlands, Austria and Portugal. Caltex-being Woolworths’ supplier-happened to be the under bidder for the deal. In a statement, it said its own valuation was full and fair value given the “declining trend in supermarket fuel redemption volumes, the restrictive commercial terms to enable ongoing provision of a fuel discount offer by Woolworths, and considering the fact that the Woolworths network is leased rather than owned”. BP’s Australian president Andy Holmes said: “We are excited to bring BP’s global expertise and success in food and convenience offers to Australia through this partnership with Woolworths”. “This is highly strategic for Woolworths, they see a great future in convenience, a lot of growth and together we are going to be able to grow”, he told The Australian.
