Viva Energy, a fuel producer and retailer, is looking to acquire On The Run (OTR), a rising quick-service restaurant and convenience brand. Should the merger get the nod from the competition authority, Coles Express signs could vanish from petrol stations next month.
Viva is in the process of expanding its network of convenience fuel outlets across prime locations throughout the country, with plans to rebrand them following OTR’s model. Furthermore, they’re eyeing the introduction of fast electric charging stations as a measure against the dwindling sales of fossil fuels.
Viva’s CEO, Scott Wyatt, stressed the urgency of their rebranding plans and acknowledged that petrol-only service stations might face challenges in the coming two decades. The merger is currently under review by the Australian Competition and Consumer Commission and Foreign Investment Review Board, with decisions anticipated by the end of September.
Originating from South Australia, OTR offers a mix of standard convenience goods, beverages, hot food, and more. It also drives pre-paid fuel and food purchases via its app, incentivized by loyalty discounts.
Earlier in May, Viva took over Coles Express, which manages over 700 outlets across the country. However, the proposed addition of OTR’s 205 stores would elevate their employee count to close to 15,000.
Wyatt applauded OTR’s business model, noting that it draws about 70% of its earnings from convenience sales, contrasting Coles Express’s 30%. He remarked, “This acquisition is a transformative move. Venturing into quick service restaurants and service stations is novel for us, and vastly different from just fuel distribution.”
While fuel sales in Viva’s existing network are 7% less than pre-COVID levels, there was a 4% increase in the six months leading to June. Wyatt pointed out that rising living costs, especially persistently high petrol prices, are burdening drivers.
Sales of jet fuel and diesel surged by 15% through Viva’s commercial and industrial sectors, indicating the revival of Australia’s aviation sector with resumed international flights.
Viva has had to postpone the launch of ultra-low sulphur gasoline to the latter half of 2025, despite expectations of its availability next year. The delay is due to the need for refining enhancements at Geelong Refinery to adhere to upcoming federal fuel quality norms for lower-emission vehicles. The largest investment they’ve made in two decades, estimated at $350 million, encountered setbacks due to challenges in procuring parts, Wyatt revealed.
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