Caltex to acquire Mobil service stations for $300 million

28 May 2009

Caltex Australia (Caltex), which is 50 per cent-owned by Chevron Corp, has entered into an agreement to acquire 302 Mobil service station sites in Australia at a cost of $300 million including estimates for inventories and other settlement costs.

''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," Caltex managing director and CEO Des King said yesterday.

"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."

The Australian Competition and Consumer Commission said it would scrutinise the deal as Coles and Woolworths dominate the retail petrol market and taking out a major player would leave the three remaining companies with greater capacity to influence prices.

The deal could be blocked if the deal lessens competition in the fuel market, said Small Business Minister Craig Emerson.

"If it's anti-competitive then, of course, we would be very unhappy and I think the ACCC in those circumstances would give it the thumbs down,'' Dr Emerson told ABC Television.