Ampol, which had been placed in a trading halt this morning ahead of the official announcement, told the share market this evening that it has reached an agreement to acquire EG Australia and its roughly 500 petrol stations.
Ampol will spend about $1.1 billion in cash and shares to complete the takeover.
EG’s service stations already bear the Ampol logo, which supplies it with about 2.3 billion litres of fuel each year.
“The proposed EG Australia acquisition makes sense for Ampol,” chief executive and managing director Matt Halliday said.
“It is a business and market we understand well, given our multi-year relationship with them including fuel supply and brand licence agreements.
“We are uniquely placed to leverage our demonstrated capability as a known and trusted brand in fuel and convenience retailing.”
The $1.1 billion price tag is a significant loss for the UK-based EG Group, which entered the Australian market in 2019 when it paid $1.73 billion for the Woolworths Petrol business and its 540 outlets.
However, fuel consumption has dwindled since then due to more efficient vehicles hitting the road, the rise of working from home, and particularly the emergence and take-up of electric vehicles in Australia.
The takeover is subject to approval by the ACCC, and Ampol has proposed it will sell 20 outlets in order to avoid falling foul of the competition watchdog.
If approved, the deal is set to be completed by mid-2026.
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