EG Group to buy 540 Australian forecourts for £1bn

Blackburn-based petrol forecourt operator EG Group is to buy a network of 540 sites in Australia for A$1.725bn, around £970m.

The company has entered into a binding agreement with Woolworths Group, which operates a nationwide network and employs circa 4,000 people.

In the year to 30 June 2018, the business generated A$4.8bn of revenue and sold 3.6 billion litres of fuel.

As part of the transaction, EG Group and Woolworths have entered into a 15 year commercial alliance.

As part of the deal, Woolworths will commence a new wholesale food supply agreement to the network. In return, EG Group will honour customer rewards points and Woolworth's popular four cent per litre fuel loyalty discount.

EG Group's expansion into Australia follows its recent acquisitions in the USA, including the purchase of 225 Minit Mart branded convenience retail stores and petrol stations.

With the inclusion of the Woolworths assets, EG Group will own and operate circa 5,250 sites across Europe, the US and Australia.

Mohsin Issa, EG group founder and co-CEO expressed: “For the past 17 years, we have had a vision of becoming a leading petrol station/convenience store operator around the world. This is another exciting international milestone on our growth journey.

"The Woolworths’ assets present a fantastic opportunity to further grow our international footprint and deliver our best-in-class retail experience in a new geography. 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.” The transaction is subject to Australian Foreign Investment Board (FIRB) approval. Completion is expected to occur in early 2019.