Viva Energy has completed its acquisition of the Coles Express fuel and convenience network marking the first step in Viva’s transformation into a leading convenience and mobility business.
Coles has received cash consideration of $300 million from Viva Energy and has assigned leases, which represented a liability of $816 million on Coles’ balance sheet as at 30 June 2022.
The deal sees Viva Energy take control of more than 700 Coles Express sites nationally with the business planning on transitioning these sites over to OTR branding, which will be completed over the next two years.
Viva Energy announced its intention to acquire the OTR business last month for $1.15bn, and as part of that announcement, flagged that it would combine the best of the Coles Express and OTR offers into one compelling customer proposition, while taking the OTR brand national.
As part of the sale, Coles and Viva Energy have entered a multi-year strategic partnership, whereby Coles customers will have access to the four cent per litre fuel docket across the network; and Viva Energy will remain a partner of the Flybuys Program, with customers able to continue earning and redeeming points across the network.
Coles will also continue to partner with Viva Energy in relation to product supply arrangements, enabling customers to benefit from continued access to Coles Own Brand product range. In addition, Coles will provide ongoing transitional services for up to two years to support Viva Energy in establishing its own internal capabilities.
Speaking on the Coles Express acquisition, Scott Wyatt, CEO and Managing Director of Viva Energy, explained the plans for the business moving forward.
“The transaction accelerates our plans to grow and transform our Convenience & Mobility business, while ensuring customers continue to enjoy the excellent customer service provided by the dedicated Coles Express team, the extensive product range in-store and the loyalty programs we know they love.”
The completion of the acquisition concludes the Alliance agreement with Coles Group, which was originally intended to end in 2029.
By bringing forward the end of the Alliance agreement, Viva Energy has created Australia’s largest fuel and convenience network under a single operator.
Finalisation of the OTR acquisition is the next critical step in Viva Energy’s convenience and mobility transformation strategy.