Latest news with #StevenGregg
Epoch Times
14 hours ago
- Business
- Epoch Times
Ampol to Acquire About 500 Petrol Stations in $1.1 Billion Deal
Ampol will purchase EG Group's Australian operations in a transaction worth AU$1.1 billion, expanding its service station network across the country. The deal will give Ampol control of around 500 fuel and convenience sites currently operated by EG Australia, a subsidiary of the British-owned EG Group. As per Reuters, the acquisition will be funded through AU$800 million in cash, sourced from existing debt, and approximately AU$250 million from the sale of Ampol shares. Ampol Chairman Steven Gregg said the transaction would deliver scale and operational benefits. 'The combined network will have greater scale and significant cost synergies that will support strong returns and earnings growth for our shareholders,' he said. Ampol expects the integration to deliver annual savings of between $65 million and $80 million. The company currently supplies fuel to 80,000 customers nationwide and serves around 3 million people each week through its retail outlets. EG Group's Exit from Australia The sale will mark EG Group's departure from the Australian market, five years after it entered through a $1.25 billion acquisition of Woolworths' fuel business. The British-based operator, which has grown to over 6,000 sites worldwide, has been shedding non-core assets to reduce its debt load. Earlier this week, EG agreed to sell its Italian business for 225 million euro as part of a broader strategy to strengthen its balance sheet. The company's net debt stands at about US$5.3 billion, built up during an aggressive acquisition spree, and pre-tax profits have fallen sharply—from US$1.4 billion to US$10 million last year, according to The Times. The sale of its Australian arm is subject to clearance from the Australian Competition and Consumer Commission.
Reuters
a day ago
- Business
- Reuters
Ampol beefs up retail network with $718.9 million EG Australia deal
Aug 14 (Reuters) - Australia's Ampol ( opens new tab said on Thursday it would buy British fuel station operator EG Group's local unit, EG Australia, for a total of A$1.1 billion ($718.85 million), as the fuel retailer looks to expand its network in the country. Ampol said it would acquire EG Australia through A$800 million in cash, to be funded by existing debt, and proceeds from sale of its shares, valued at A$250 million. The deal would open the door for Ampol to acquire EG Australia's 500 fuel and convenience sites across the country. "The combined network will have greater scale and significant cost synergies that will support strong returns and earnings growth for our shareholders," Ampol Chairman Steven Gregg said. The company estimates savings of about A$65 million to A$80 million from the deal. Ampol supplies fuel to 80,000 customers across Australia and provides fuel and convenience products to 3 million customers every week through its retail network, according to its website. "Investors are likely to welcome a scaled-up Ampol that combines greater coverage with a stronger platform for cost efficiency," said Hebe Chen, market analyst at Vantage Markets. "While risks remain, the valuation and upside for brand strength and business resilience make a compelling case." Ampol has been actively acquiring fuel networks in recent years, including Z-Energy and SeaOil, although some assets, such as Gull NZ were later divested. The deal, subject to approval from the Australian Competition and Consumer Commission, will also mark the exit, opens new tab of EG Group from the country it entered in 2019 through the acquisition of the petrol business of supermarket chain operator Woolworths ( opens new tab for $1.25 billion. The Australian Financial Review first reported the deal earlier in the day. ($1 = 1.5302 Australian dollars)
