Woolworths Group confirms $1.7 billion sale of petrol business to EG Group

Woolworths Group has announced it will sell its Australian petrol business to UK petrol retailer EG group for a sum of AUS$1.73 billion.

The deal comes months after BP’s botched attempt to buy the assets from Australia’s largest supermarket operator. Australia’s antitrust regulator blocked the $1.8 billion deal at the end of last year due to concerns it would lead to higher fuel prices.

“This transaction is a positive for our customers, our team and our shareholders,” Woolworths chief executive Brad Banducci said in a statement.

Through the sale, Woolworth’s will relinquish ownership of 540 petrol stations as part of a wider plan to cut non-core businesses and keep ahead of rival supermarket Coles.

Meanwhile, EG Group’s founder and co-chief executive said: “The Woolworths’ assets present a fantastic opportunity to further grow our international footprint.”

Woolworths and EG Group have entered into a 15-year commercial alliance encompassing fuel discount redemption, loyalty and wholesale product supply as part of the deal.