Oil company Caltex will expand its presence in the retail petrol sector with the purchase of 302 Mobil petrol stations for $300 million.
The deal includes 200 freehold sites and 102 leasehold sites. The stations are primarily located along the east coast of Australia in metropolitan areas.
Caltex will be allowed to use the Mobil brand for two years.
“The acquisition is a good strategic fit for Caltex. It will enable Caltex to grow its business consistent with its long term strategy of being a marketing-led business,” Caltex chief executive Des King said this morning.
King says Caltex is a relatively small player in the retail fuel market when compared with Coles Express, Woolworths and BP. Caltex’s data suggests the deal will boost its market share from 16% to 22%, putting it on par with Coles Express and Woolworths (also with 22% of the market) and in front of BP (which has a 19% share).
“This acquisition will allow us to better compete in the retail fuel market with these major players.”
Caltex will take on 1700 staff in the deal, including senior management.
The deal is subject to approval from the Australian Competition and Consumer Commission and the Foreign Investments Review Board.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
