Image Source: © Timonschneider | Megapixl.com
- The shares of Viva Energy zoomed up after the company shared it would acquire Coles Express – the fuel and retailing business of Coles Group.
- The consideration of the transaction is AU$300 million.
- The transaction is expected to be executed by the first half of 2023.
Petroleum products manufacturer, Viva Energy Group Limited (ASX:VEA), on Wednesday (21 September 2022), shared that it has entered into an agreement with Coles Group Limited (ASX:COL) to acquire its fuel and convenience retailing business – Coles Express.
With this acquisition, the company plans to become a leading integrated fuel and convenience network in Australia.
With the acquisition of this transaction, the fuel and convenience alliance between the parties, which was due to end in 2029, would terminate immediately.
Coles informed the market that it has entered into a multi-year strategic partnership with Viva Energy so that Coles Express and Coles customers continue enjoying loyalty benefits and customer offers which they currently enjoy at the Coles Express site.
Under the partnership, Coles’ customers could access four cents per litre fuel docket. Also, the customers would continue to earn and redeem points across the Flybuys Program.
Scott Wyatt, CEO and managing director of Viva Energy, commented:
At 10:58 AM AEST, Viva Energy shares were spotted trading at AU$2.76 apiece, 4.94% higher than the previous close. Around the same time, Coles' share price was up 0.030% to trade at AU$16.76 per share.
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