Viva Energy plans to acquire Coles’ c-stores
Shell’s licensee in Australia is set to rival the convenience store network of Ampol if the purchase of the 710 stores goes through.
Viva Energy Group is planning to buy the convenience stores that are part of its Shell service stations from Coles Group. The company, owner of the oil company’s fuel retail brand in Australia, has its sights set on competing with Ampol’s retail network by acquiring a total of 710 Coles Express sites.
According to a report by news agency Reuters, if the transaction goes through it will grant the Group a bigger c-store network than its competitor. Viva Energy is set to break a lease agreement with its partner and pay roughly $201 million to gain control of the stores.
The news comes amidst a transition for the fuel retail sector in the country, after the pandemic led customers to stay in their houses and the war in Ukraine impacted fuel supply. The demand is expected to recover in the near future, so the move by Viva is read as an anticipation of this recovery. On the other hand, Coles would exit a non-core business and continue operating its chain of supermarkets.
The deal must still be approved by the country’s antitrust regulator, the Australian Competition and Consumer Commission. Currently, the institution is waiting on the submission to “assess it carefully” as it told Reuters.
