Coles has announced it is selling its fuel and convenience stores across the country in a massive $300 million deal.
The 710 Coles Express sites will be acquired by Viva Energy, which already supplies fuel to Coles.
It will see all petrol and convenience stores rebranded into Viva Energy, which will slowly be completed over the next two years.
However, customers are being assured they will still be able to use the four cent per litre fuel docket discount and continue to redeem flybuys points.
“As part of the transaction, Coles and Viva Energy have entered into a multi-year strategic partnership so that Coles and Coles Express customers will continue to enjoy the compelling customer offer and loyalty benefits they currently enjoy at Coles Express sites,” Coles said in a statement.
CEO Steven Cain said the company made the decision to offload its hundreds of fuel and convenience stores to focus on growing its supermarket and liquor businesses.
“This agreement is positive not only for Coles and Viva Energy, but also for our customers, team members and respective shareholders,” Mr Cain said.
“Viva is well-placed to make the most of opportunities to grow the Express business into the future, while we will strengthen our focus on our omnichannel supermarket and liquor businesses and our ambition of becoming Australia’s most sustainable supermarket group”.
Boss of Viva Energy, Scott Wyatt, has described the acquisition of the servos as an “exciting step” for the company.
“We have enjoyed a strong partnership with Coles over the last 20 years and this is an exciting next step for our business and our relationship,” Mr Wyatt said.
“The acquisition means we will be able to accelerate our plans to grow the integrated fuel and convenience business while our customers continue to enjoy the excellent customer service provided by the dedicated Express team, the extensive product range in-store and the loyalty programs we know they love.”
The deal is expected to be completed in the second half of FY23, subject to Australian Competition and Consumer Commission and Foreign Investment Review Board approval.
