BP will be establishing a strategic partnership with Woolworths, one of Australia’s largest supermarket retailers.
The agreement includes BP acquiring, rebranding and operating Woolworths’ existing 527 fuel and convenience sites, as well as an additional 16 sites currently under construction, across Australia for a total consideration of US$1.3 billion.
A new fuel and convenience offer, Metro at BP, will be the first of its kind for Australia’s growing convenience sector, bringing together BP’s quality fuels, Woolworths’ Everyday Rewards, fuel discount dockets and a new range of high-quality, ready-to-eat and take home fresh food products.
The combination of BP’s international experience and expertise in fuel and convenience offers, with Woolworths’ network, high-quality food products and loyalty program is an exciting prospect for customers and is expected to create additional value for BP.
Initially, the partners will launch a Metro at BP pilot program across 16 BP fuel and convenience sites and phase two of the program will expand the Metro at BP format across more than 200 sites.
BP’s global expertise and experience have delivered leading fuel and convenience offers through major partnerships around the world, including with Marks & Spencer in the UK and REWE in Germany.
The transaction will be subject to Australian Competition and Consumer Commission (ACCC) and Foreign Investment Review Board (FIRB) approval.
BP and Woolworths Group (Woolworths) today announced that they have agreed to enter a strategic partnership that will include BP acquiring, rebranding and operating Woolworths’ existing 527 fuel and convenience sites across Australia, as well as an additional 16 sites currently under construction, for a total consideration of US$1.3 billion.
The partnership is an exciting prospect for Australian customers with BP and Woolworths set to deliver a fuel and convenience store and loyalty offer unlike any other in Australia. Key features of the offer are:
Reinventing convenience with a truly differentiated offer, to be branded Metro at BP, that includes a strong seasonal selection of high-quality, ready-to-eat and take home fresh food products.
It is proposed that BP will become a cornerstone partner in Woolworths’ Everyday Rewards loyalty program, inviting customers to earn rewards points on both fuel and in-store purchases at any BP site in Australia.
For the first time, Woolworths’ Everyday Rewards cardholders would also be able to redeem points at the register as discounts on purchases at BP.
BP will maintain the Woolworths’ 4% litre redemption offer in the 527 fuel and convenience sites acquired from Woolworths and will expand this offer to additional BP sites, giving customers, even more reasons to enjoy BP’s quality fuels.
Tufan Erginbilgic, Chief Executive, BP Downstream, commented, “The development of high-quality, differentiated fuel and convenience offers is a key part of BP’s strategy – allowing us to grow our marketing business in important global markets.
“We are excited to be establishing this strategic partnership with Woolworths, one of Australia’s largest supermarket retailers. Globally we have developed a winning retail formula where we partner with strong local brands, like Marks & Spencer in the UK, to provide our customers with a convenience retail offer that meets the needs of their busy lifestyles. The combination of all aspects of this strategic partnership is expected to create significant value for BP.”
Initially, BP and Woolworths will launch a Metro at BP pilot program across 16 BP fuel and convenience sites, allowing both companies to test the offer and generate customer feedback. A second phase will see a further expansion of the Metro at BP format across more than 200 sites.
Andy Holmes, President BP Australia, added, “Over the past three years BP has significantly invested in its fuel and convenience sites across Australia. The opportunity to grow our retail business and work alongside Woolworths, with their strength in grocery and food innovation, will further enhance our customers’ fuel and convenience retail experience.
“We enjoy strong, successful commercial partnerships with our many dealers, distributors and suppliers and we look forward to sharing the benefits this transaction brings to us all.
“While Woolworths fuel business has solid foundations, the future combination of BP’s international experience and expertise in fuel and convenience offers with Woolworths high-quality food products and loyalty program means that BP expects to realise significant improvements in value.”
The acquisition of Woolworths’ fuel and convenience sites will add to BP’s existing network of 350 company-owned retail sites across Australia. BP also supplies fuel and branding to a further 1,000 sites owned by independent business partners.
Brad Banducci, Woolworths Group Chief Executive Officer, said, “For Woolworths customers, our Strategic Partnership with BP will enable them to enjoy our leading Woolworths Reward program at BP fuel sites and ensure they continue to benefit from the 4cpl fuel discount. Longer term, it will also provide them with a compelling, new “food-on-the-go” offering through the roll-out of the “Metro at BP” concept.”
The transaction, which is subject to approval from the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB), is expected to complete over the next 12 months.
Written By BP