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Highlights
- Coles’ shares are trading in green with a gain of 0.548% at 12:00 PM AEDT on the ASX today.
- Viva Energy (ASX:VEA) takes on Coles Express operations for an AU$300 million headline price.
The shares of Australian food and staples giant Coles Group Limited (ASX:COL) were trading in the green zone this morning (11 October 2022). At 11:48 AM AEDT, Coles’ share price was up by 0.548%, making it trade at AU$16.490 apiece on the ASX on 11 October 2022.
Coles' share price declined 4.47% in the last month. It has decreased by almost 8% so far this year, and over the previous five years, the share price has increased by 28.27%.
Despite dipping below its 20-day moving average, the S&P/ASX 200 is up today (11 October 2022), rising 21.10 points or 0.32% to 6,688.90. Additionally, six out of eleven sectors were up at 12:00 PM AEDT.
What’s helping Coles?
- On 21 September 2022, Coles Group released its sustainability report along with an important announcement in regard to Coles Express. Coles Express is Coles’ convenience retailing business. As per the company’s announcement on the ASX, Viva Energy (ASX:VEA), an Australian oil and fuel manufacturer, signed a deal to acquire Coles Express. The two companies plan to work together to create the largest fuel and convenience network under one operator.
- Under the deal, Coles Express will transfer its infrastructure and industry-leading retailing capabilities to Viva Energy, where it will be run as a separate business entity. Viva Energy and Coles Group pledged to maintain their partnership through the delivery of Coles products, continuation of current reward programs, and transitional help.
- Additionally, as per Coles, the alliance agreement will be terminated, and Viva Energy will buy the Coles Express-operated retail convenience chain for a headline price of AU$300 million, subject to standard completion adjustments. The overall impact is AU$143 million after accounting for working capital benefits and the existing fuel stock payable in 2019.
The information from Coles' sustainability report above is in line with Coles' objective to sustainably help all Australians lead happier and healthier lives.
Things to know about Coles Group Limited
Coles is one of the largest Australian retailers, with over 2480 retail stores across Australia. The company's chief operations comprise sales through its flagship food and staples Coles Supermarkets chain and sales of alcohol and fuel through its Coles Liquor and Coles Express (acquired by Viva Energy) shops. The company is headquartered in Melbourne, Australia.
