Caltex Australia is spending about $300 million to add 302 service station sites to its portfolio with a planned acquisition of Mobil service sites.
The Caltex Star Mart brand which is heavily franchised through the Caltex network will step in to provide a convenience store element in some of the acquired stores. However the company is not yet able to confirm what role franchising will play in the development of the sites.
The agreement is subject to Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB) review and clearance which is expected to take some months.
Caltex Managing Director and CEO Des King said “The acquisition is a good strategic fit for Caltex. It will enable Caltex to grow its business consistent with its long term strategy of being a marketing-led business.
“Today, Caltex is primarily a wholesaler of fuel but a relatively small player in the retail fuel market when compared with Coles Express, Woolworths and BP. This acquisition will allow us to better compete in the retail fuel market with these major players.”
Caltex is purchasing the 302 Mobil service station sites as a going concern, providing it with experienced people to help grow the business.
“Caltex will take on more than 1700 employees. We regard employees as a key asset,” said Mr King.
This article appears courtesy of 5 Minute Franchising Newsletter