Australia: Woolworths considers sale of 530 gas stations

Australian retailer Woolworths has confirmed that it is likely to sell its fuel retailing branch, with a number of offers already on the table.

Woolworths has been struggling with some of its business branches and is now trying to slim down the company´s assets. Last month the company sold its hardware business, Home Timber and Hardware, to Metcash.

The fuel retailing branch, said to be worth $1.5 billion, encompasses 530 service stations that generated $4.6 billion in sales in 2015/16, reports the The Sydney Morning Herald.

"Woolworths has received incomplete and conditional proposals from a number of parties in relation to the purchase of the business and the development of an enhanced convenience and loyalty offer to its customers,” said the company.

Retailing partner Caltex is supposed to be one of the interested buyers which have made an offer for the Woolworths business.

"Obviously if the assets were for sale, given our relationship with Woolworths going back to 2003, then we would be interested," said Caltex Australia chief executive Julian Segan last month.

The service stations are owned by Woolworths and are supplied petrol and diesel by Caltex.