Supermarket giant Coles has announced it will sell hundreds of its Coles Express-branded petrol stations around Australia as the business focuses on its food and liquor offering.
Informing shareholders this morning, Coles said it will receive $300 million from the sale of the petrol stations to Viva Energy, which has been supplying fuel from its Geelong refinery.
All 710 Coles Express stations will be rebranded, but Coles customers will still have access to the four cent per litre fuel docket program, and Viva Energy will remain a partner of Flybuys.
Current staff of the Coles Express network will also be transferred to Viva Energy, and Coles’ own-brand product range will continue to be stocked at all sites.
The sale, if approved by regulators, is expected to be finalised by the second half of the financial year.
Coles CEO Steven Cain said the Coles Group will now direct its energy towards improving its food and liquor products in the market.
”This agreement is positive not only for Coles and Viva Energy, but also for our customers, team members and respective shareholders,” he said.
“Viva is well-placed to make the most of opportunities to grow the Express business into the future, while we will strengthen our focus on our omnichannel supermarket and liquor businesses and our ambition of becoming Australia’s most sustainable supermarket group.”
Viva CEO Scott Wyatt said the customer service and product offering currently available at Coles Express won’t change.
“We have enjoyed a strong partnership with Coles over the last 20 years and this is an exciting next step for our business and our relationship,” he said.
“The acquisition means we will be able to accelerate our plans to grow the integrated fuel and convenience business while our customers continue to enjoy the excellent customer service provided by the dedicated Express team, the extensive product range in-store and the loyalty programs we know they love.
“We look forward to welcoming all of the Coles Express team members to Viva Energy once the transaction completes.”
The sale is still pending approval from the Australian Competition and Consumer Commission (ACCC).
