Australia’s Woolworths Mulls Offers for Its Gas Station Businessby
Supermarket chain operates more than 500 outlets with Caltex
Caltex nearing final stages of deal, The Australian says
Australian supermarket chain Woolworths Ltd. has received offers to buy its gas station business and is still weighing whether to keep or sell the unit.
The Sydney-based company, which operates more than 500 petrol outlets in an alliance with Caltex Australia Ltd., is aiming to focus more on its main food and liquor offerings and is getting out of other businesses such as it home improvements joint venture with Lowe’s Cos.
“Woolworths wishes to advise that it is currently evaluating whether to retain or dispose of its petrol business,” the company said in a regulatory statement Friday. “Woolworths has received incomplete and conditional proposals from a number of parties in relation to the purchase of the business and the development of an enhanced convenience and loyalty offer to its customers.”
The Australian newspaper earlier reported that Caltex was in the final stages of talks to buy the fuel business, without saying where it got the information. The newspaper said the transaction could be valued at about A$1.5 billion ($1.1 billion). Caltex declined to comment.