BP said on Wednesday that it will acquire fuel and convenience store sites from Australian supermarket retailer Woolworths.
BP said it will established a strategic partnership with Woolworths that calls for BP to acquire, re-brand and operate Woolworths’ existing 527 fuel and convenience sites.
BP will also acquire an additional 16 sites currently under construction.
The sites are located across Australia and the deal is worth US$1.3 billion.
The acquisition will add to BP’s existing network of 350 company-owned retail sites across Australia.
BP also supplies fuel and branding to a further 1,000 sites owned by independent business partners.
There are currently 1,400 BP branded fuel and convenience retail sites across Australia, with 350 being company-owned.
The rest of the retail sites are branded BP but owned by independent business partners.
The partnership will also include a new fuel and convenience offering that will be called Metro at BP.
BP said Metro at BP “will be the first of its kind for Australia’s growing convenience sector, bringing together BP’s quality fuels, Woolworths’ Everyday Rewards, fuel discount dockets and a new range of high-quality, ready-to-eat and take home fresh food products.
The partners will intially launch a Metro at BP pilot program across 16 BP fuel and convenience sites.
Phase two of the program will expand the Metro at BP format across more than 200 sites.
“The combination of BP’s international experience and expertise in fuel and convenience offers, with Woolworths’ network, high-quality food products and loyalty program is an exciting future prospect for customers and is expected to create additional value for BP,” BP said.
The deal will also allow Woolworths’ Everyday Rewards cardholders to redeem points at the register as discounts on purchases at BP.
BP said it will maintain the Woolworths’ 4 cent per liter redemption offer in the 527 fuel and convenience sites acquired from Woolworths.
The company said it also will expand that offer to additional BP sites.
Woolworths Group is Australia’s largest retailer and generated more than $58 billion in revenue during fiscal year 2016.
The transaction will be subject to Australian Competition and Consumer Commission and Foreign Investment Review Board approval.
“Over the past three years BP has significantly invested in its fuel and convenience sites across Australia. The opportunity to grow our retail business and work alongside Woolworths, with their strength in grocery and food innovation, will further enhance our customers’ fuel and convenience retail experience,” BP Australia president Andy Holmes said.