Monday , March 1 2021

Woolworths releases services to the British group EG for $ 1.7 billion



The supermarket gig will also sell wholesale food and groceries at the gas station chain as agreed.

Sales revenue could provide valuable ammunition to Woolworths or reduce the price of food products or invest more in their supermarkets.

Woolworths has announced he will consider the "range of opportunities" for what he needs to do with a $ 1.7 billion loss, including dividend payment to shareholders.

"This transaction is positive for our clients, our team and our shareholders," said Woolworths Brad Banducci.

"The deal will continue to strengthen the opportunities our customers have for greater value when shopping with us, with the benefits of the Woolworths Rewards program and the fuel discount bids that will continue.

"The long-term food supply arrangement will also ensure that the EG Group can benefit from competitive products, including Woolworths's own brands, to provide a world-class supply that will further boost Woolworths FoodCo."

The agreement is to be approved by the Foreign Investment Advisory Board, and is expected to be completed early next year.

EG founder and co-chairman Mohsin Issa said the Woolworths gas stations offered a "fantastic opportunity" to grow internationally.

"We are committed to investing in a web site, introducing leading retail brands, developing alliances with Woolworths, and collaborating with an exceptional management team," Issa said.

EG mainly manages large gas stations, fuel sales, housing and fast-food restaurants.

Fuel Consumption Caltex will maintain a long-term supply of gasoline supply to Woolworths websites and Woolworths customers will still be able to use fuel-saving bills and earn loyalty points at Caltex petrol stations.

Woolworths finalizing the sale of his gas stations follows a tortured attempt to give them BP, who agreed to buy them nearly two years ago.

The ACCC blocked the agreement in August 2017 for concern that it would reduce competition and lead drivers to pay more for gasoline – despite BP offering to sell a large number of its stores where it was geographically overlapping.

BP eventually pulled the runway in July, saying the concessions that would be needed to satisfy ACCC would make the job commercially unusable.


Source link