Coles sells fuel and convenience business Coles Express to Viva Energy for $300 million
Coles has exited the fuel and convenience game to focus on its core and more profitable groceries and liquor arms, transferring $816m of leases off its balance sheet.
Coles Express, the supermarket giant’s fuel and convenience business, has been sold to Viva Energy for $300m, the company announced.
Coles entered the fuel business in 2003, but CEO Steven Cain said the decision had been made to focus on its main revenue drivers groceries and liquor.
Coles Express’ gross earnings dropped 37 per cent for the 2022 financial year, a loss put down to Covid lockdowns.
Coles is saying goodbye to the fuel and convenience business. Picture: David Caird
MORE: Coal billionaire in huge Byron Bay sell off
RBA’s horror home price plunge prediction
In announcing the move, Coles said the current leases represented a $816m liability on its balance sheet.
All 710 Coles Express petrol stations will be rebranded, but Coles will continue to supply the stores. Coles’ discount fuel docket program will continue and Viva Energy will continue as a partner of Flybuys.
The sale is pending approval from the ACCC and if given the green light is expected to be finalised by mid 2023. Coles branding will be erased from the current sites over the next three years.
“The acquisition means we will be able to accelerate our plans to grow the integrated fuel and convenience business,” Viva CEO Scott Wyatt said.
“While our customers continue to enjoy the excellent customer service provided by the dedicated Express team, the extensive product range in-store and the loyalty programs we know they love.
All Coles Express site leases will be transferred to Viva.
“We look forward to welcoming all of the Coles Express team members to Viva Energy once the transaction completes.”
At 664 of the 710 sites, the land occupied by Coles Express, where it is a subtenant of Viva Energy, will revert to Viva and Viva will acquire the remaining 46.
MORE: $2bn Darling Harbour ‘reimagination’ to begin
