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Coles will sell its fuel and convenience business, Coles Express, to Viva Energy for $300 million.

Coles exited the fuel and convenience game to focus on its core, more profitable food and liquor divisions, divesting $816 million of leases off its balance sheet.

Coles Express, the supermarket giant’s fuel and convenience business, has been sold to Viva Energy for $300 million, the company said.

Coles entered the fuel business in 2003, but CEO Steven Cain said the company decided to focus on its main sources of income – food and liquor.

Coles Express gross profit fell 37% in fiscal 2022. This is due to Covid lockdown.

Coles is saying goodbye to the fuel and convenience business.Photo: David Caird

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In announcing the move, Coles said the current lease represents $816 million of debt on its balance sheet.

All 710 Coles Express gas stations will be rebranded, but Coles will continue to supply the stores. Coles’ discounted fuel docket program will continue, and Viva Energy will continue as a Flybuys partner.

The sale is pending approval from the ACCC and is expected to close by mid-2023, if granted a green light. The Kohl’s brand will be removed from the current site over the next three years.

Viva CEO Scott Wyatt said:

“Our customers continue to enjoy the excellent customer service provided by our dedicated Express team, the wide product range in our store, and our customer-favorite loyalty program.

All Coles Express site leases will be transferred to Viva.

“We look forward to welcoming all of the Coles Express team members to Viva Energy once the transaction is complete.”

At 664 of the 710 sites, land occupied by Viva Energy sub-tenant Coles Express will be returned to Viva, who will acquire the remaining 46.

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Coles will sell its fuel and convenience business, Coles Express, to Viva Energy for $300 million.

Source link Coles will sell its fuel and convenience business, Coles Express, to Viva Energy for $300 million.

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