By Colin Long
BP is understood to be eyeing Woolworths’ service station network after a report by Fairfax Media this week revealed the oil giant had recently sent executives to Australia.
While no confirmation has been reported to date, the prospect of Woolworths divesting itself of its service station arm would free up capital for the company and allow it to concentrate that capital into its underperforming supermarkets division and Big W stores.
According to analysts, the Woolworths petrol business could be worth around $1.5 billion. If a sale was to be on offer there would likely be more than one bidder. Woolworths’ service stations’ long term partner and fuel supplier, Caltex, may also be interested in any potential sale.
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This story first appeared in C&I Week.