UK-based EG Group is preparing to sell its Australian fuel and convenience store operations, and Ampol, its long-standing wholesale supplier, is emerging as the most likely buyer.
EG entered the Australian market in 2019, acquiring 540 service station sites from Woolworths for $1.73 billion. Now, facing financial pressures and a strategic shift, the company is reportedly considering an exit from the market through a sale estimated to exceed $1 billion. Talks are currently underway between EG Group, its advisers, and potential buyers.
Ampol is viewed as the most natural successor to take over the network. It has been supplying fuel to these stations under a long-term commercial agreement that began when Woolworths still owned the assets. The network operates under the EG Ampol brand, further strengthening the connection between the two companies.
The potential acquisition aligns with Ampol’s recent strategy of expanding its presence in both Australian and international fuel markets. In recent years, Ampol has completed several notable acquisitions, including Milemaker Petroleum in Melbourne, Gull New Zealand, SeaOil in the Philippines, and New Zealand’s Z Energy. Taking over EG’s Australian network would consolidate its footprint and further reinforce its dominance in the local market.
EG Ampol currently operates 517 service station locations. Sales have been on a downward trend, with annual revenue slipping 6.4 per cent to $4.24 billion. The decline reflects wider industry challenges, including reduced fuel volumes and changing consumer behaviour as more motorists switch to hybrid and electric vehicles.
In response, EG Group has closed several underperforming or marginally profitable sites, trimming operations in an increasingly competitive landscape. The shift to more sustainable transport alternatives continues to impact traditional fuel retail, prompting many operators to review their long-term strategies.
Ampol’s potential acquisition would position the company to streamline operations, strengthen its retail network, and prepare for the industry’s future, including the rollout of alternative energy solutions and EV infrastructure.
Meanwhile, competition in the fuel and convenience market is intensifying. Viva Energy, another major player in the Australian fuel sector, recently made a significant move of its own by acquiring OTR Group for $1.22 billion. That deal added a large network of service stations and convenience outlets to Viva’s portfolio, boosting its reach and retail capability.
If Ampol proceeds with the purchase of EG’s Australian business, it would mark one of the most significant reshuffles in the industry in recent years. It could also trigger further consolidation as retailers adapt to evolving energy trends, stricter emissions targets, and changing consumer preferences.
For EG Group, the sale would signal a strategic retreat from the Australian market. The company has been streamlining its global portfolio, focusing on core regions and shedding assets in markets that no longer align with its long-term vision.
The fuel and convenience store industry continues to undergo a major transformation, driven by the transition to cleaner energy, growing regulatory scrutiny, and increased competition from major players investing heavily in technology and infrastructure. A successful deal between Ampol and EG would not only reshape the competitive landscape but also set the stage for the next era of retail fuel in Australia.
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