Ampol to Acquire About 500 Petrol Stations in $1.1 Billion Deal

Ampol will purchase EG Group’s Australian operations in a transaction worth AU$1.1 billion, expanding its service station network across the country.

The deal will give Ampol control of around 500 fuel and convenience sites currently operated by EG Australia, a subsidiary of the British-owned EG Group.

As per Reuters, the acquisition will be funded through AU$800 million in cash, sourced from existing debt, and approximately AU$250 million from the sale of Ampol shares.

Ampol Chairman Steven Gregg said the transaction would deliver scale and operational benefits.

“The combined network will have greater scale and significant cost synergies that will support strong returns and earnings growth for our shareholders,” he said.

Ampol expects the integration to deliver annual savings of between $65 million and $80 million. The company currently supplies fuel to 80,000 customers nationwide and serves around 3 million people each week through its retail outlets.

EG Group’s Exit from Australia

The sale will mark EG Group’s departure from the Australian market, five years after it entered through a $1.25 billion acquisition of Woolworths’ fuel business.

The British-based operator, which has grown to over 6,000 sites worldwide, has been shedding non-core assets to reduce its debt load.

Earlier this week, EG agreed to sell its Italian business for 225 million euro as part of a broader strategy to strengthen its balance sheet.

The company’s net debt stands at about US$5.3 billion, built up during an aggressive acquisition spree, and pre-tax profits have fallen sharply—from US$1.4 billion to US$10 million last year, according to The Times.

The sale of its Australian arm is subject to clearance from the Australian Competition and Consumer Commission.

Strategy and Future Challenges

Ampol has been steadily growing its footprint through acquisitions, including New Zealand’s Z Energy and the Philippines-based SeaOil, although it later divested assets such as Gull NZ.

The company’s strategy comes amid an evolving transport sector, with electric vehicle uptake expected to impact traditional fuel sales in the coming years.

While some investors have urged energy retailers to diversify away from fossil fuels, Ampol has also been investing in low-carbon infrastructure.

In August 2024, the Albanese government allocated AU$100 million to support Ampol’s rollout of EV charging bays, hydrogen refuelling points, solar panels, and low-carbon liquid fuels.

Ampol plans to install more than 200 public fast-charging bays at its service stations by 2025, funded through the Clean Energy Finance Corporation.

Despite the looming shift toward electric mobility, the EG Australia acquisition indicates Ampol is doubling down on its core fuel retailing business, while also looking for ways to future-proof its network through clean energy initiatives.