BP has decided to back out of the £978 million (USD $1.3 billion) acquisition of Woolworths’ retail business in Australia.
The purchase was initially announced in December 2016, with BP saying it would rebrand and operate Woolworths’ existing 527 fuel and convenience sites, as well as an
additional 16 sites under construction.
But the UK energy giant has come to conclusion that the deal “cannot be structured to meet its strategic objectives”.
BP insisted it still intends 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.
“Our ambitions are underpinned by our long-standing strong relationships and partnerships. We are committed to working with our commercial partners, new and existing, to continue our transformational agenda for the integrated fuels value chain, and deliver innovation, technology and a best-in-class offer consumers expect,” Mr Holmes said.
“BP is making good on its promise and continues to grow across the Downstream. In marketing, BP has differentiated and material businesses, underpinned by strong brands, distinctive premium offers and increasing exposure to growth markets.
“In manufacturing, the refining portfolio is geographically balanced with good access to advantaged feedstocks.
BP is also growing here in Australia with investments at Kwinana Refinery and growing midstream volumes.
In retail, BP is transforming convenience with new in-store offers and leading-edge technology, like BPme.”