Servo giant Ampol confirms $1.1 billion takeover of UK-owned petrol stations
ASX:ALD has been placed in a trading halt ahead of a formal announcement. Current proposal is to sell at least 20 of EG's stations to satisfy any ACCC requirements.
Ampol Australia Reportedly Set to Acquire EG Australia for $1.1 Billion
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Whoopee !!
Makes sense for them to do this. Wonder if it'll mean they all become Ampol Foodary locations? I think currently the difference between 'Ampol' and 'Ampol Foodary' is the Foodary ones are corporate owned?
Ampol without foodary is owned by an independent group as the food store is something random like "Sunrise Store" or "urbanista".
they wont change with this buy out.
Wonder if it'll mean they all become Ampol Foodary locations?
If you have a look at the presentation pack Ampol released late yesterday, Ampol intends to do the following:
- Divest approximately 20 EG service stations
- Convert 125 EG service stations into U-GO service stations
- Convert the remaining EG service stations into Ampol Foodary service stations
I think currently the difference between 'Ampol' and 'Ampol Foodary' is the Foodary ones are corporate owned?
Ampol Foodary service stations should all be corporate-owned Ampol service stations, but I am not entirely sure whether there are any Ampol corporate-owned service stations that do not use the Foodary branding. For example, I think the Ampol in Exmouth (WA) is a corporate-owned Ampol service station, but that does not currently use the Foodary branding.
Any bargains
That'd be my question. How is this relevant to anyone except an employee or shareholder of the company being bought.
The $1.1 billion price tag is a significant loss for the UK-based EG Group, which ο»Ώentered the Australian market in 2019 when it paid $1.73 billion for the Woolworths Petrol business and its 540 outlets.
Nice, post as a deal.
EG Group Australia $1,100,000,000 (was $1,730,000,000)
Not for us.
Oh No !!!
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π₯π₯π₯ββββπ₯ββββπ₯π₯π₯OH YEAH!!!
That cannot be good for competition.
Why not?
If eg is worth $1.1 Billion, then ie and etc will be next.*
*This isn't Financial advice. lol
If eg is worth $1.1 Billion
What example?
If
Remember Woolies sold it's petrol stations to EG because the ACCC blocked BP buying them.
Now Ampol wants to buy into a bigger business and ACCC will be happy if they sell down just 20 stations.
You cannot make up this comedy. ACCC is just a bunch of clueless clowns.
Ampol is hoping the ACCC will be happy with that, it hasn't been approved though.
It's also a different kettle of fish in terms of supply, Ampol is already the fuel supplier to EG. However BP proposed removing Ampol (then Caltex) as the supplier back in the day and was one of the things the ACCC looked at - BP consolidating power in the overall fuel market, not just retail.
The ACCC didn't block BP per say.
BP just thought the deal was uneconomical with the concessions that the ACCC would require from BP for the deal to go through.
Also as @freefall101 has said, this is Ampol's proposal only, not ACCC's accepted position.
bugger, no more using wish egift to pay for fuel
.Or it maybe expanded.
It may depend on Ampol deciding to keep their current Fujitsu POS systems, or switch over to Woolworths Group's NCR POS.
In the case this clears the ACCC, I'd predict Ampol Australia may decide the keep the current Fujitsu POS systems, meaning no more Woolworths group e-gift cards at any Ampol location.
In the less likely scenario that the later happens and Ampol Foodary switches from their current Fujitsu POS over to the NCR POS systems used by Woolworths group, you'd expect the Woolworths Group e-gift cards (WISH and Essentials) to be eventually accepted at Ampol Foodary as a result of the POS switchover.
I think it's worthwhile pointing out that EG paid $1.73b for these stations in 2019, and is now selling them to Ampol for $600m less.
I get that the market has definitely changed over that time (and thus the NPV would have moved), but it's funny how they're now letting them go for 2/3rd what they paid for them to someone who I assume was also in the data room back in 2019 when WOW was selling them.
EG is a private equity backed ponzi scheme that spent a decade overpaying for acquisitions across the globe when interest rates were zero.
I'm actually surprised that Ampol sees a future in fossil fuels, but as a shareholder I enjoyed the jump in share price.
Same here!
They sold ampol energy to focus on fossil fuels.
Ok