LONDON (dpa-AFX) - BP Australia said that it will not continue with the proposed acquisition of Woolworths Group Limited's (WOW.AX) retail fuel and convenience business, originally announced on 28 December 2016.
The deal was valued at about US$1.3 billion when it was announced in December 2016 and would have included more than 500 gas stations, plus some development sites.
The Australian Competition and Consumer Commission, however, announced in December last year that it would oppose the deal. The regulator said it was worried it would lower competition in the retail supply of fuel, noting that BP prices were already higher than Woolworths in major cities and that BP typically increases prices faster than Woolworths.
Despite its best efforts, BP said today it has determined the transaction cannot be structured to meet its strategic objectives.
The decision does not deter BP Australia from its strategy to transform the retail convenience sector in Australia.
Andy Holmes, BP Chief Operating Officer - Asia Pacific, said, 'I am very confident in what the future holds and the delivery of BP's strategy for strong market-led growth to 2021 with a continued focus on safe and reliable operations, increasing efficiency, simplification and modernisation.'
Separately, Woolworths Group said that it has been notified by BP Australia that BP will not continue with the proposed purchase of the Petrol business as announced on 28 December 2016.
Woolworths Group said it is continuing to engage actively with alternative options for its Petrol business.
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