June 25, 2018 - 7:25 AM EDT
Print Email Article Font Down Font Up Charts

Wired News - Australian Retailer Woolworths Group’s Proposed Sale of its Retail Petrol Business to UK's Oil & Gas Major BP PLC Gets Cancelled Following Opposition from Australian Regulator

LONDON, UK / ACCESSWIRE / June 25, 2018 / If you want access to our free research report on BP PLC (NYSE: BP), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=BP as the Company's latest news hit the wire. On June 21, 2018, Woolworths Group Ltd announced that BP's Australian subsidiary has backed out of the previously announced deal to acquire its retail petrol business. BP had signed the agreement with Woolworths Group in December 2016, in a deal valued at approximately $1.3 billion. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, BP most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=BP

Impact

BP decided to back out of the deal due to the opposition from the Australian Competition and Consumer Commission (ACCC). BP's decision will lead to the immediate cancellation of the sale agreements and strategic partnership agreements signed by Woolworths Group and BP in December 2016. In the meantime, Woolworths Group has indicated that it is looking at strategic options for its retail petrol business and is expected to restart the process of identifying interested buyers.

The cancellation of the deal with Woolworths Group would be a setback for BP's plans of expanding its retail petrol business in Australia. However, the Company remains committed to its plan of growing its retail petrol business and will continue to work on its strategy to achieve its targets by FY21.
Clarifying its stand on the matter, BP's media statement read:

"Despite its best efforts, BP has determined the transaction cannot be structured to meet its strategic objectives."

Backdrop

In December 2016, Woolworths Group and BP entered into an agreement wherein BP agreed to acquire Woolworths Group's retail petrol business. The deal was valued at approximately $1.3 billion at that time. Woolworths Group's retail petrol business included fully operational 527 fuel and convenience sites across Australia, as well as an additional 16 sites which were under construction. As per the terms of the deal, BP planned to become a cornerstone partner in Woolworths' Everyday Rewards loyalty program, where the cardholders would earn rewards points on both fuel and in-store purchases at any BP site in Australia. BP had also agreed to maintain the Woolworths' 4 cent per liter redemption offer across the 527 fuel and convenience sites. BP already has over 1,400 fuel and convenience retail sites across Australia, of which 350 are Company-owned and the balance are owned by independent business partners. The acquisition of Woolworths Group's retail petrol business was expected to add to BP's existing network of 350 Company-owned retail sites in Australia.
BP believed that the acquisition would transform convenience retailing in Australia and would offer great value to Australian consumers as the deal offered BP's quality fuels, Woolworths Group's Rewards, as well as a range of high quality, fresh food. BP's confidence comes from its experience in successfully rolling out similar deals with its partners in the UK, Germany, South Africa, and other countries.

The Woolworths Group-BP deal came under the review of the ACCC. On completion of its review, in December 2017, the ACCC announced that it plans to oppose the proposed sale of Woolworths Group's retail petrol business to BP. The ACCC reasoned that the deal between Woolworths Group and BP would reduce competition by reducing the number of players in the fuel market, which would lead to an increase in fuel prices.

Both Companies had expressed their disappointment with the ACCC's opposition and had planned to appeal against the regulator's decision. However, they were unable to satisfactorily address the regulator's concerns.

About Woolworths Group Ltd

Bella Vista, New South Wales-based Woolworths Group was founded in 1924. The Company is Australia's largest retailer with more than 3,500 stores across Australia and New Zealand that sell food, drinks, petrol, general merchandise, and hotels. Woolworths Group manages some of Australia's most recognized and trusted brands, including Woolworths, Countdown, Dan Murphy's, BWS, and BIG W. The Company has over 205,000 employees and serves over 29 million customers every week across all its brands. The Company's revenues were over $58 billion for FY16.

About BP PLC

Founded in 1889, London, UK-based BP is a global oil and gas Company. The Company is engaged in the finding and production of oil and gas, fuels, lubricants, natural biofuels, as well as wind power. It also markets and transports the fuels that it manufactures across the globe. The Company has operations in more than 70 countries and is supported by around 74,000 employees globally. Some of the leading brands owned by the Company include Amoco, ampm, Aral, Castrol, and Wild Bean Cafe. The Company's sales and other operating revenues were $240 billion for FY17.

Stock Performance Snapshot

June 22, 2018 - At Friday's closing bell, BP's stock rose 3.67%, ending the trading session at $45.78.

Volume traded for the day: 8.46 million shares, which was above the 3-month average volume of 6.43 million shares.

Stock performance in the last three-month – up 17.02%; previous six-month period – up 11.79%; past twelve-month period – up 32.31%; and year-to-date - up 8.92%

After last Friday's close, BP's market cap was at $151.98 billion.

Price to Earnings (P/E) ratio was at 28.90.

The stock has a dividend yield of 5.24%.

The stock is part of the Basic Materials sector, categorized under the Major Integrated Oil & Gas industry. This sector was up 2.4% at the end of the session.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: [email protected]

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors


Source: ACCESSWIRE Investor Awareness (June 25, 2018 - 7:25 AM EDT)

News by QuoteMedia
www.quotemedia.com

Legal Notice