Euro Garages’ parent company EG Group announced the completion of its purchase of Woolworth’s petrol business in Australia on April 2.
Mohsin Issa, founder and co-CEO said: “We are pleased to have turned the page on this exciting new chapter for the EG Group. Australia is a key market in the Asia Pacific region and this acquisition allows the EG Group to establish a solid base for further growth in the region.”
The deal, which was clinched in November, enables EG Group to expand into Australia through the purchase of Woolworths Group’s 540-site network for A$1.725bn.
Woolworths Petrol employs about 4,000 people, and in the year to 30 June 2018, the business generated A$4.8bn of revenue and sold 3.6bn litres of fuel.
As part of the transaction, EG Group and Woolworths have entered into a 15-year commercial alliance covering loyalty, fuel discount redemption, and wholesale supply. Key features of the alliance include:
• Woolworths’ four cent per litre fuel discount will continue across the network;
• customers will continue to earn Woolworths’ Rewards points on fuel and merchandise purchases across the network; and
• Woolworths Group will commence a new wholesale food supply agreement to the network, providing an extensive product range and competitive pricing.
With the inclusion of the Woolworths assets, EG Group owns and operate about 5,250 sites across Europe, the US and Australia.