Australia: Woolworths sells fuel business to BP for $1.3b

Australian grocery retailer Woolworths has sold its chain of gas stations to BP plc for AUS$1.8 billion ($1.3 billion).

The sale of Woolworths´ fuel business, compromising 527 gas stations and 16 development sites, follows an effort from the company to go back to its core supermarket business.

"The release of A$1.785 billion from the sale will be used to strengthen our balance sheet and reinvest in our core businesses," Woolworths Chief Executive Brad Banducci said.

BP will be acquiring, rebranding and operating Woolworths’ existing 527 fuel and convenience sites after the $1.3 billion deal.

The acquisition of Woolworths’ fuel and convenience sites will add to BP’s existing network of 350 company-owned retail sites across Australia. BP also supplies fuel and branding to a further 1,000 sites owned by independent business partners.

Woolworths´ existing fuel partner, Caltex Australia, expressed its “disappointment” over the end of their partnership and failing to acquire the gas station network.