Woolworths to sell fuel business for $1.7 billion

Woolworths Group announced on Friday plans to sell its petrol business to British retailer, EG Group for $1.725 billion. The supermarket giant has entered into a 15-year commercial alliance with the global leader in fuel and convenience retailing.

As part of the deal to sell its 540 fuel convenience sites, Woolworths will also commence a wholesale food supply agreement to the network. Woolworths’ four cent per litre fuel discount will continue and customers will continue to earn Woolworths Rewards points on fuel and merchandise.

Woolworths Group CEO Brad Banducci said that the transaction is “positive for our customers, our team and our shareholders.”

“The agreement will continue to strengthen the opportunities our customer have for greater value when shopping with us, with the benefits of Woolworths Rewards program and the duel discount offer set to continue,” he said.

EG Group is the leading petrol forecourt retailer in Europe and has had recent success in the US.

“We are committed to investing in the site network, introducing leading retail brands, developing the alliance with Woolworths and working with the exceptional management team,” EG Group founder and co-CEO Mohsin Issa said.

On Monday morning, Woolworths announced that its chief legal officer and company secretary Richard Dammery will step down from his role in late January 2019. Dammery played an important role in the group’s petrol transactions and the recent sale of the fuel business.

Woolworths CEO Brad Banducci acknowledged Dammery’s contribution to the group over the last four years.

“The board and the management have valued Richard’s experience and his clear and principled advice over the last four years. During his tenure at Woolworths, Richard has played an important role as we began to turnaround and transform our business.”

Dammery also led the closure of Masters Home Improvement, “one of the largest and most complex transactions of its kind”, according to a statement from Woolworths.

The group confirmed that Marcin Firek will remain as company secretary

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