Viva Energy acquires OTR's convenience store business in Australia

The fuel retailer has confirmed its intent to buy the convenience store business for $1.15 billion from Peregrine Corporation.

Viva Energy Group Limited has entered into a binding agreement to acquire the OTR Group for a total consideration of $1.15 billion from Peregrine Corporation.

As Australia’s second fuel retailer, the firm looks to increase its presence throughout the country and diversify its business. The news follows a September announcement from the company which stated its intent to increase its convenience store network in the coming months in an effort to embrace electric charging capabilities as well.

After acquiring assets from Coles Express, Viva Energy seeks to bring together both convenience brands to establish a nationwide network with a pathway to more than 1,000 stores. The fuel retailer also looks to extend the OTR convenience offer and technology platforms to Coles stores that can support the format, as well as merging both loyalty platforms.

“The introduction of OTR’s superior convenience offering, including quick serve restaurants, will help revolutionize the diversity and attraction of our retail offering. As our stores increasingly become retail destinations, we expect convenience earnings will grow and reduce our dependence on traditional fuels,” said Scott Wyatt, CEO and Managing Director at Viva Energy.

Completion of the transaction is expected to occur in the second half of 2023, subject to customary FIRB and ACCC approval.