Woolworths considering offers to buy its petrol stations

Woolworths says it’s made no decision yet on several offers for its $1.5bn portfolio of petrol stations.

A Woolworths-owned petrol station.

Woolworths has confirmed it’s in negotiations to sell its $1.5 billion portfolio of petrol stations.

In an update to the market this morning, the retailer said it had yet to make a decision on whether to accept one of several offers for its petrol operation.

It comes after The Australian’s Data Room column reported Caltex to be in the final stages of negotiations on a deal with Woolworths.

The retailer (WOW) 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”.

“Woolworths remains in discussions with a number of interested parties,” the company said.

“No decision in relation to the future of the business has been made, and Woolworths wishes to advise that current discussions may not result in a transaction.”

Woolworths is believed to be working with Morgan Stanley on the potential deal, while Caltex is seen receiving advice from UBS.

Should the retailer successfully head for the exit it would represent the latest in a series of moves to refocus on its core food and liquor division, which has lost momentum in recent years as the group unsuccessfully sought to challenge Bunnings’ dominance in the home improvement space.