Woolworths will transfer all existing Petrol management and operations teams to EG Group. Credit: Bidgee.

Australian supermarket chain Woolworths has agreed to sell 540 company-owned fuel convenience stores to British convenience retailer EG Group for $1.242bn.

Under the binding agreement, a 15-year commercial alliance has been entered by both parties for fuel discount redemption, loyalty and wholesale product supply.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

As part of the transaction, Woolworths will focus on starting a new wholesale food supply agreement to the network to offer extensive product range and competitive pricing.

Woolworths Group CEO Brad Banducci said: “The agreement will continue to strengthen the opportunities our customers have for greater value when shopping with us, with the benefits of the Woolworths Rewards program and the fuel discount offer set to continue.

“The agreement will continue to strengthen the opportunities our customers have for greater value when shopping with us.”

“A long-term wholesale food supply arrangement will also ensure that EG Group can benefit from competitive product sourcing, including Woolworths’ own brands, to provide a world class convenience offer that will add further scale to Woolworths FoodCo.”

The transaction is currently subject to Foreign Investment Review Board approval and is expected to close in early 2019.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Following the completion of the transaction, Woolworths will also transfer all existing Woolworths Petrol management and operations teams to EG Group.

In addition, the retailer will consider a range of options for the use of proceeds, including capital management initiatives.

EG Group founder and co-CEO Mohsin Issa said: “The Woolworths’ assets present a fantastic opportunity to further grow our international footprint and deliver our best-in-class retail experience in a new geography.

“We are committed to investing in the site network, introducing leading retail brands, developing the alliance with Woolworths and working with the exceptional management team.”

EG Group currently operates 4,700 stores across Europe and North America and employs more than 28,000 people.