The deal terminates the current fuel and convenience alliance between Coles and Viva Energy
Corrs Chambers Westgarth has advised Australian retailer Coles Group Limited on the sale of its fuel and convenience business to petroleum company Viva Energy Group Limited for $300m.
In line with the deal, Coles entered into a multi-year strategic partnership with Viva Energy, allowing Coles and Coles Express customers to continuously enjoy loyalty benefits, including the 4c/litre fuel discount offer and earning and redeeming Flybuys points.
Moreover, the transaction will see Viva Energy own and operate 710 Coles Express sites. It will also terminate the existing fuel and convenience alliance between Coles and Viva Energy, which was due to end in 2029.
“This agreement is positive not only for Coles and Viva Energy, but also for our customers, team members and respective shareholders,” Coles CEO Steven Cain said. “Viva is well-placed to make the most of opportunities to grow the Express business in the future, while we will strengthen our focus on our omnichannel supermarket and liquor businesses and our ambition of becoming Australia’s most sustainable supermarket group.”
The sale is subject to regulatory approvals and is expected to be completed in the first half of 2023.
Partner Jonathan Farrer led the Corrs team in assisting Coles with all aspects of the transaction. He was supported by over 30 lawyers from across the firm, including partners Phil Catania, Mark McCowan, Ian Reynolds, Steven Rice, Justin Fox, Nathaniel Popelianski, Alex Peace, Rosie Syme, Louise Camenzuli, Paul Burns, Rhys Jewell and Jennee Chan.
“We are very pleased to advise Coles on this important strategic transaction, involving Australia’s largest convenience and fuel retail network with 710 sites and around 6,000 staff,” Farrer said. “Given the scale and complexity of the transaction, which also involves a multi-year strategic partnership and transitional arrangements, successful execution required collaboration from experts across the entire firm.”