Coles to sell fuel and convenience business to Viva Energy for $200 mln (updated)

Waypoint REIT

21/09/2022 24:24

(Adds details, background)
    Sept 21 (Reuters) - Coles Group  COL.AX  has agreed to sell
its fuel and convenience retailing unit to power producer Viva
Energy  VEA.AX  for A$300 million ($200.64 million), as the No.2
Australian grocer shifts its focus on omnichannel supermarket
and liquor businesses.
    The companies said on Wednesday that Coles Express will be
transitioned and operated as an independent business unit within
Viva Energy, which will own and operate 710 sites nationally. 
    In fiscal 2022, Coles Express generated sales revenue of
A$1.13 billion, about 2.9% of the company's total consolidated
revenue of A$39.37 billion.
    "Viva is well-placed to make the most of opportunities to
grow the Express business into the future," Coles Chief
Executive Officer Steven Cain said in a statement.
    The deal is expected to close in the second half of FY23
subject to Australian Competition and Consumer Commission and
Foreign Investment Review Board's approval, Viva said.
($1 = 1.4952 Australian dollars)

 (Reporting by Himanshi Akhand in Bengaluru; Editing by Shinjini
Ganguli)
 ((Himanshi.Akhand@thomsonreuters.com;))