Coles sells fuel and convenience business to Viva Energy for $200m

The logo for oil refinery and fuel distributor Viva Energy pictured in Corio, Victoria, Australia on June 28, 2020. REUTERS/Sonali Paul

Sept 21 (Reuters) – Coles Group (COL.AX) has agreed to sell its fuel and convenience retail unit to A$300 million ($200.64 million) as Australia’s second-largest grocer transforms Electricity producer Viva Energy (VEA.AX) focuses on omnichannel supermarkets and alcohol.

Coles Express will be transformed and operated as a separate business unit within Viva Energy, which will own and operate 710 sites across the country, the companies said on Wednesday.

In the 2022 financial year, Coles Express’ sales revenue was A$1.13 billion, or about 2.9 per cent of the company’s total combined revenue of A$39.37 billion.

“Viva is well-positioned to capitalize on future opportunities to grow the Express business,” Coles chief executive Steven Cain said in a statement.

Viva said the transaction is expected to close in the second half of FY23, subject to approval by the Australian Competition and Consumer Commission and the Foreign Investment Review Board.

(1 USD = 1.4952 AUD)

Reporting by Himanshi Akhand in Bengaluru; Editing by Shinjini Ganguli

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