June 25, 2018 - 7:25 AM EDT
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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:


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:



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."


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.


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

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