Australia: BP takes interest in Woolworths gas stations

Oil giant BP has sent executives to Australia as it considers making an offer for Woolworths' extensive gas station business, reported Financial Review.

A major operation could be underway in Australia´s fuel retailing market as BP contemplates the acquisition of Woolworths´ $1.5 million fuel business. The interest from the oil giant comes after Woolworths´ new management team and board revealed they were open to any options.

The Australian supermarket chain operates a network of around 500 Caltex-branded gas stations and sells more than 4 billion litres of fuel per year. According to analysts, the Woolworths petrol business could be worth around $1.5 billion.

In the case that Woolworths´ board decided to put the business up for sale, there would be a number of obstacles regarding the operation. Firstly, Caltex is the wholesaler supplier of all the gas stations Woolworths operates and the pre-emptive rights between both parties are undisclosed.

Furthermore, the Australian Competition and Consumer Commission might take issue with an offer coming from a major player such as BP. The British oil company already has an extensive fuelling network in the country and supplies about 1400 service stations.