Ampol, one of the country’s largest petrol and diesel businesses, is in late-stage discussions to acquire EG Group’s Australian service station portfolio for more than $1 billion, in a deal that would put its forecourt presence on par with main rival Viva Energy.
The two companies have been in talks for 2 months and were finalising a deal on Thursday morning. Ampol shares have been paused from trading pending an announcement on what it described as a “potential material acquisition transaction”.EG has used the brand “EG Ampol” in Australia to try to win customers.
Such a deal would represent a further shake-up of the fluid petrol and diesel retailing market, which has been transformed from 15 years ago when supermarket giants Coles and Woolworths had about a 50 per cent market share between them.
Ampol, formerly Caltex Australia, is expected to pay for the acquisition with cash and scrip. The company, led by chief executive Matt Halliday, recently freed up its balance sheet capacity by striking a deal to sell its loss-making electricity retailing businesses in Australia and New Zealand, raising proceeds of about $65 million. UBS is advising Ampol on the acquisition.
EG, a British group, paid $1.73 billion to enter Australia’s fuel market in 2019, acquiring Woolworths’ 540 petrol stations. Ampol already supplies the fuel for the sites, which are co-branded with its name.
Full story Ampol (ALD ASX) poised for $1b EG service station acquisition
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