BP Buys Woolworths Petrol for $1.8billion.

[csv8]

"BP is to emerge as one of the top three petrol retailers in the country with the $1.8 billion purchase of Woolworths' chain of petrol stations nationwide which have been supplied until now by Caltex Australia.
Ahead of the deal, Caltex has made two acquisitions - one in Victoria and another in New Zealand - as it prepares for the loss of sales volume through the Woolworths petrol stations.


Woolworths will sell its petrol station portfolio to BP in a $1.8 billion deal that will help the retail giant fund its ongoing fight to regain market share in the grocery sector.*Photo: Glen Hunt
The deal between Woolworths and BP needs the approval of the Australian Competition and Consumer Commission, which could force the divestment of some petrol stations to third parties.
Woolworths needs the cash from the sale to reduce debt as it continues to streamline its operations in a bid to revive its faltering earnings. It is exiting its Masters hardware venture which is being wound up as it shrinks back to its core supermarket and Big W retail offering.
The deal between BP and Woolworths will enable the Woolworths 4¢*a litre discount to be extended to BP outlets, the retailer said, which will lift to 80 per cent from 75 per cent the number of its outlets with service station nearby.
A core part of the deal involves the operation of convenience stores at the service stations, with BP to trial the Woolworths Metro format at its service stations prior to committing to rolling them out across its network of 200 petrol stations.
The deal with BP involves all 527 Woolworths outlets and is expected to take up to 12 months to finalise, Woolworths said.
The Woolworths fuel business has annual revenue of $4.6 billion and earned a pretax profit of $117 million last financial year."
http://www.brisbanetimes.com.au/busi...27-gtimj7.html

[commodorenutt]

Pretty poor profit % from all that revenue. No wonder they're bailing out.

Just means I'll have to avoid them now for LPG, as BP gives crap economy in my LPi.

[uniacidz]

As long as they remain honest and dont price gauge then be fine.

/pun

[Tonz]

Originally Posted by commodorenutt

Pretty poor profit % from all that revenue. No wonder they're bailing out.

Just means I'll have to avoid them now for LPG, as BP gives crap economy in my LPi.

Over here I prefer BP fpo my LPG ute, but not any more. Dont care what it costs me the less I have to do with woolies the happier I am.

[csv8]

"CALTEX Australia says it is disappointed its fuel supply alliance with Woolworths will end after losing out to oil major BP in the battle to buy the supermarket giant’s petrol stations.
Caltex said on Wednesday it believed its bid for the Woolworths service stations business represented “full and fair value”, and the company had to exercise financial discipline in pursuing growth.
Caltex said its 3.5 billion litre wholesale fuel supply arrangement with Woolworths will remain in place until the BP deal is finalised.
Caltex shares were down 1.2 per cent at $30.22 at 10.45am"
http://www.couriermail.com.au/busine...1a12dcbb468f75

[dunga]

Originally Posted by uniacidz

As long as they remain honest and dont price gauge then be fine.

/pun

were talking about an oil company here are we not (double pun)

[Junkyard-Dog]

Originally Posted by commodorenutt

Pretty poor profit % from all that revenue. No wonder they're bailing out.

For BP, it's all about market share. It would probably be a great deal for them even if they were initially making a loss from the Woolworths sites they just pruchased.

[DJM83]

Originally Posted by commodorenutt

Pretty poor profit % from all that revenue. No wonder they're bailing out.

Just means I'll have to avoid them now for LPG, as BP gives crap economy in my LPi.

There more to it than that, WW isnt in the best shape at the moment.

[Ghiaman]

Interesting.
About 4 years ago BP down here closed down and ripped up a number of servos including one that was quite convenient for me as BP had the government contract for fuel supply at the time. They claimed that the distance between servos was too close and they needed to rationalise. Fast forward a couple of years and Woolworths/Caltex took over the vacant empty site and built a new servo from scratch. Ironic that its now going to be BP branded again.. Caltex also now has the government contract for fuel supply. Wonder if their contract has any provision for number of sites available for users!

Sent from my SM-G935F using Tapatalk

[simon varley]

that's goodbye to your 4c docket discount then, if anyone still bothers with that

[Jastel]

Good news for me and my BP cards...many BP servos I used to use changing to Puma and United lately.

[.:4:.]

Stranger things have happened, remember when 7/11 bought Mobil?

[CyberWasp]

Having to recover 1.8billion.....less competition.....I can't see it having a negative impact on prices.

[GASWAGON]

So does this mean all of the Woolies/Caltex sites will turn into B.P sites???

[Trevor 57]

will the WW branding disappear? Along with the loyalty program?

[TER2BO]

Well its looks like it will make it easier for us to get Better Petrol at a price.
BP is one of the most expensive in our marketplace.
In addition they seem to be one of the first to raise prices and one of the last to lower them.
Remember it up the prices to help pay the zillions of $ for the oil spill in the gulf some years ago. Still doing it as far as I know.

[Sorted]

Trying to get some quick money back for their failed attempt in the hardware game with Masters .

I would have thought petrol stations are good money makers.

I only use BP anyway in my G6ET so all good for me 🤓🤓

[csv8]

Originally Posted by Trevor 57

will the WW branding disappear? Along with the loyalty program?

WW will go but loyalty program will continue for 10 years....

[blackf6]

The Woolworths discount will still apply. Site branding will be joint.

[Nikked]

Originally Posted by simon varley

that's goodbye to your 4c docket discount then, if anyone still bothers with that

Nope, the discount still applies.

[eb2fairmont]

Wonder how this will play for the Shahins in sa with on the run

[Itsme]

Originally Posted by simon varley

that's goodbye to your 4c docket discount then, if anyone still bothers with that

Wrong, the 4 cent docket discount will be available at all BP outlets, to me it sounds like woollies is pulling the plug on Caltex & BP is the new boy on the block.

[blackf6]

The deal is in it's infancy. Existing contracts remain for 2 years.

[danzvtil]

Originally Posted by eb2fairmont

Wonder how this will play for the Shahins in sa with on the run

Anything to shake them up will be good, I like supporting a local company, but they run so many sites, that they name their price.

[mtbkym01]

Originally Posted by eb2fairmont

Wonder how this will play for the Shahins in sa with on the run

Some of their sites offer different fuel "Advantage 98", wonder if this is how they all end up. It's their own OTR branded fuel apparently

[DASTIG]

Originally Posted by Sorted

Trying to get some quick money back for their failed attempt in the hardware game with Masters .

I would have thought petrol stations are good money makers.

I only use BP anyway in my G6ET so all good for me 🤓🤓

Correct on the Masters issues. Fuel side of things has started to lose some margin and volume as well. Takings from fuel is down. This was thought to occur from when they were forced to cap the fuel discount at 4 cents.

Due to the lower discount offering the public also stopped shopping in Woolworths resulting in their turnover and profit growth falling as well. Might be good timing to get the best price for the fuel business. Next on the chopping block is BigW, it's been making losses for some time.

[DASTIG]

Long way to play out yet, ACCC will be the biggest hurdle.

In North QLD a lot of the BPs changed to PUMA so it will be great to see the BP servos back again.

[DJM83]

Originally Posted by DASTIG

Correct on the Masters issues. Fuel side of things has started to lose some margin and volume as well. Takings from fuel is down. This was thought to occur from when they were forced to cap the fuel discount at 4 cents.

Due to the lower discount offering the public also stopped shopping in Woolworths resulting in their turnover and profit growth falling as well. Might be good timing to get the best price for the fuel business. Next on the chopping block is BigW, it's been making losses for some time.

So glad i got out of Woolies when i did actually. Yeah Big W has been on the chopping block for a while. I swapped to the opposition a short time ago, they are in a much better place.

[DJR-351]

Originally Posted by Sorted

Trying to get some quick money back for their failed attempt in the hardware game with Masters and Home Timber & Hardware

I would have thought petrol stations are good money makers.

I only use BP anyway in my G6ET so all good for me ����

WW had their fingers in way to many pies……

[OLD BALDY]

I thought I read the were going to still use Caltex fuel!!
Does sound crazy , I might be wrong.