ACCC to put Caltex, Woolies under the pump

The ACCC has made it clear it will closely scrutinise Caltex’s $1.4bn petrol deal with Woolworths.

Caltex and BP both have around 20 per cent each of the petrol retail market and the retail behemoths own slightly more. Picture: Roy VanDerVegt.

The ACCC has made clear it will take a close look at Caltex’s move to pay $1.4 billion for the co-branded Woolworths petrol stations by examining a smaller deal unveiled this month.

The regulator said today it would examine the $95 million purchase of 45 stations in the Milemaker deal, which suggests it will take a closer look at buying 528 stations from Woolworths.

BP has made a rival bid of $1.4bn plus a package to help Woolworths pay for its fuel discount vouchers.

Caltex and BP both have around 20 per cent each of the petrol retail market and the retail behemoths own slightly more.

All sides have got their lawyers ready for the fight, with Woolworths hiring Michael Corrigan at Clayton Utz and Caltex hiring Liza Carver at Herbert Smith Freehills.

A decision on the deal is expected by year’s end.

Next on the block for Woolworths could be Big W, now its boss Sally Macdonald quit.

Her departure followed criticism within the company over her handling of the stores, including slashing marketing spending and the hiring of a selection of past colleagues to help her run the place.

A Woolworths insider, David Walker, is now running the brand.

Big W only accounts for 3 per cent of Woolworths sales so the brand is not the main game.