Woolworths Petrol Announcement
Yesterday Woolworths advised the SDA that on 24 December 2016, they entered into binding agreements to facilitate the sale of its 527 Woolworths-owned fuel convenience sites and 16 committed development sites to BP.
The transaction is subject to customary closing conditions (including BP obtaining Australian Competition and Consumer Commission (ACCC) and Foreign Investment Review Board (FIRB) approval). Until then there will be no changes to Woolworths’ existing fuel offer.
Completion is expected to occur no earlier than 2 January 2018.
Subject to satisfaction of the transaction conditions, Woolworths and BP will enter into a long term strategic partnership designed to:
- expand our Woolworths Rewards loyalty program;
- facilitate the continuation of our 4 cents per litre (cpl) petrol discount;
- maintain value for our Woolworths customers; and
- deliver a world class, market-leading fuel and convenience offer by rolling-out a new “Metro at BP” format across up to 200 high value BP sites following the successful conclusion of a pilot at 16 sites.
The announcement follows a comprehensive process, during which a number of parties expressed interest in the Fuel Business and submitted indicative proposals. After extensive evaluation of the proposals received, it was decided that BP’s proposal met Woolworths’ strategic and broader commercial imperatives and in its entirety provided superior long-term shareholder value. BP in turn, was attracted to the network of 527 fuel convenience sites, the highly capable team of Fuel Business team members and the opportunity to team with Woolworths to deliver a world class, market-leading fuel and convenience offer.
While details are not yet final, if the company receive regulatory approval to go ahead with the BP Strategic Partnership, BP has committed to making offers of employment to all site level team members in our Fuel Business.
In the event that BP does not make an employment offer to any existing Fuel Business employee, Woolworths will endeavour to redeploy these staff elsewhere within the organization.
As noted, the sale transaction and the Strategic Partnership are subject to customary closing conditions including obtaining regulatory approvals such as ACCC and FIRB approval. Completion of the transaction is expected to occur no earlier than 2 January 2018.
During this period both organisations will operate on a “business as usual” basis.
SDA MEMBERS CONCERNED
A number of concerned SDA members have contacted the union about the announcement. We will continue to support our members and update you throughout the process. We welcome the approach of Woolworths in being open and transparent about these possible changes. That provides members with maximum notice of the possible changes and the maximum period of time to work through any concerns.
SDA MEMBERS SUPPORT IS ONLY A PHONE CALL AWAY
SDA members with concerns about the announcement should contact the SDA on 073833 9500 or 1800 657 141(regional). We also ask members who hear of any new developments to phone or email us at Secretary@sdaq.asn.au
Your union is just a phone call away – we are with you every step of the way.