Woolworths in talks with Caltex over potential sale of its petrol stations

WOOLWORTHS is in talks to sell off its $1.5 billion petrol business.

WOOLWORTHS is considering selling its petrol stations and is discussing a possible deal with several interested parties, reportedly including partner Caltex.

Caltex has declined to comment on The Australian newspaper’s report that it is negotiating a potential purchase of the supermarket giant’s petrol business, which has 530 service stations that generated $4.6 billion in sales in 2015/16. The service stations are owned by Woolworths and are supplied petrol and diesel by Caltex.

But Caltex has previously told AAP it would be interested in acquiring Woolworths’ petrol stations if they were for sale.

Woolworths said it is evaluating whether to retain or dispose of its service stations, and no decision has been made.

“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 customers,” the company said on Friday.