One of Australia's largest service station chains has launched a billion-dollar takeover of a British-owned operator.
Ampol entered a trading halt this morning before announcing to the share market that it has struck a deal to acquire EG Australia and its approximately 500 fuel stations.
Ampol will spend about $1.1 billion in cash and shares to complete the takeover.
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EG's service stations already bear the Ampol logo, which supplies it with about 2.3 billion litres of fuel each year.
"The proposed EG Australia acquisition makes sense for Ampol," chief executive and managing director Matt Halliday said.
"It is a business and market we understand well, given our multi-year relationship with them including fuel supply and brand licence agreements.
"We are uniquely placed to leverage our demonstrated capability as a known and trusted brand in fuel and convenience retailing."
The acquisition comes with a $1.1 billion price, marking a considerable downturn for the UK-based EG Group, which initially ventured into the Australian market in 2019, paying $1.73 billion for the Woolworths Petrol business and its 540 sites.
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Since then, fuel demand has declined as more efficient cars have become popular, remote work has increased, and electric vehicles have gained traction in Australia.
The acquisition awaits the green light from the ACCC. Ampol has suggested selling 20 sites to comply with competition regulations.
If approved, the deal is set to be completed by mid-2026.
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