BP Strikes Deal to Acquire X Convenience Service Stations

BP has finalised an agreement to purchase X Convenience, a family-owned fuel and convenience retailer, along with its network of over 50 petrol stations in South Australia and Western Australia.

Founded in 2006 by the Adelaide-based Kosmidis family, X Convenience has quickly expanded its reach in South Australia. The retailer adopted a premium convenience model similar to that of its competitor, OTR, aiming to attract customers to spend more time and money in-store. In 2021, X Convenience entered the Western Australia market, launching its first two sites in Perth.

While BP has not disclosed the purchase price, the acquisition includes a mix of freehold and leasehold ownership. This binding agreement is subject to various approvals, including Australian Competition and Consumer Commission clearance.

Lisa Archbold, BP’s Vice President of Business Development and Low Carbon Solutions, emphasised that this deal strengthens BP’s position in the South Australian market, especially following Viva Energy’s $1.215 billion acquisition of OTR, a major BP fuel customer.

“We’re committed to maintaining a robust national presence, and the X Convenience acquisition ensures we achieve that,” Archbold stated. “This isn’t just about the sites; it’s about the exceptional network and brand that X Convenience has built, aligning perfectly with our strategic goals in fuel and convenience sectors.”

Archbold highlighted X Convenience’s rapid growth and success, praising the high quality of its market offerings and network.

As part of the acquisition, BP will replace Mobil as the fuel supplier for X Convenience, enabling customers to use BP’s fuel cards. Additionally, BP plans to accelerate the deployment of electric vehicle (EV) chargers across X Convenience locations, leveraging their substantial footprints. BP has already installed over 120 BP pulse charge points nationwide and intends to expand this initiative in South Australia.

“The large footprints of many X Convenience sites are ideal for installing EV chargers, and we’re eager to extend our progress in this area,” Archbold added.

Mirroring its larger competitor, OTR, X Convenience features various in-store concepts like Coffee Station, Smokes Express, Burger X, and Down Dog ‘N Shakes, all designed to boost customer spending on in-store products.

Archbold also mentioned the possibility of expanding the X Convenience brand to new locations as BP works towards finalising the deal. “X Convenience is a strong brand in South Australia, and we aim to maintain and potentially extend this branding,” she noted.

The Viva-OTR acquisition, which involved 226 stores, required negotiations with the ACCC and concluded with Viva selling 25 sites in South Australia to Chevron while receiving 13 Chevron sites in other states.

Archbold declined to comment when asked if BP might need to relinquish sites to finalise the X Convenience deal.

Steven Kosmidis, Director of X Convenience, expressed excitement for the future. “We look forward to the next chapter as BP continues to expand the X Convenience network and enhance our customer experience,” he said.
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