Caltex confirms bid for Woolworths’ petrol business
Caltex has confirmed its interest in Woolworths’ portfolio of petrol stations as a sales process proceeds.
Caltex has confirmed its interest in Woolworths’ portfolio of petrol stations as a sales process proceeds.
The commentary follows reports in The Australian’sData Room column that Caltex — which currently has a fuel alliance with Woolworths — remained the frontrunner in the high-profile $1.5 billion auction.
BP and Puma Energy are seen among the key threats to Caltex on the deal.
In an update to the market this morning, Caltex said it had made a “conditional and confidential” bid for Woolworths’ fuels business.
“As the sale process is ongoing, and any transaction remains uncertain and is expected to take time to complete, Caltex will update the market as appropriate if there are any material changes to Caltex’s existing wholesale supply arrangements with Woolworths,” the ASX-listed group said.
“Caltex will maintain financial discipline in this process and remains focused on the creation of top quartile total shareholder returns, driven by profitable, capital efficient growth.”
Woolworths (WOW) said last month it had received several offers for its petrol operation as it sought to refocus on its core food and liquor retail operations after a tumultuous period that will be best remembered for its disastrous foray into hardware.
The retailer did not name the parties involved, saying only it has received a number of “incomplete and conditional proposals” in relation to either a purchase of the entire business or the development of a “revamped convenience and loyalty offer”.
Caltex is seen in the box seat as it’s currently the exclusive supplier of petrol and diesel to Woolworths with annual sales volumes of approximately 3.5 billion litres per annum, although this is linked to Woolworths’ continued ownership of the business.
Caltex is seen receiving advice from UBS on the potential deal, while Woolworths is being counselled by Morgan Stanley.
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