Woolworths to sell petrol sites to BP for $1.8M

Woolworths has agreed to sell its nationwide chain of fuel convenience sites to BP for $1.785 billion. The deal will include 527 Woolworths-owned petrol stations and 16 committed development sites.

The binding agreement will allow the companies to enter into a long-term strategic partnership that will create world class convenience stores in a new “Metro at BP” format, which will combine the Australian retail giant’s grocery strength and the multinational oil company’s global expertise in developing convenience offerings.

The deal will also extend the Woolworths Rewards program and reward customers for loyalty and support. The proposal includes making BP a cornerstone partner in the Woolworths Rewards program, allowing members to earn points on both fuel and in-store purchases, as well as to redeem points on purchases across BP-branded fuel sites. In addition, BP will maintain the 4 cents per litre (cpl) fuel discount offer at the existing 527 Woolworths petrol sites and expand it to BP sites.

“This transaction is a win for Woolworths customers and shareholders. For our shareholders, once the Strategic Partnership is established, it will result in Woolworths having a larger platform for our redemption and reward program, as well as providing us with a unique opportunity to partner with and draw on BP’s success in rolling out market-leading convenience food offers globally,” Woolworths CEO Brad Banducci explained. He added that Woolworths will use the $1.785 billion from the sale to strengthen the company’s balance sheet and in its core business.

For Woolworths customers, the company’s Strategic Partnership with BP will allow them to use the Woolworths Rewards program at BP fuel sites to ensure that they can continue to benefit from the 4cpl fuel discount.

“”Longer term, it will also provide them with a compelling, a new ‘food-on-the-go’ offering through the roll out of the ‘Metro at BP’ concept, expanding our existing ‘Metro’ offer,” Banducci added.

The deal is expected to be completed no earlier than Jan. 2, 2018. Until then, there will be no changes to the existing fuel offer.

Also read: Woolworths to allow suppliers to access customer data through Supplier Connect portal