Caltex gets green light for NZ acquisition

SIMONE ZIAZIARIS
June 26, 2017
Australian Associated Press

Fuel retailer Caltex Australia has received regulatory approval to buy Gull New Zealand in an approximately $325 million deal as part of its plan to increase its retail business.

Caltex on Monday said it anticipates the takeover of NZ’s leading biofuel retailer will be completed by July 3 after the New Zealand Overseas Investment Office gave its consent.

The deal will be funded through a combination of existing and new bank debt arrangements and is expected to be earnings per share accretive by the end of its first full year of operation under Caltex, the company said in a statement. 

The purchase comes less than seven weeks after the petrol supplier completed its takeover of Milemaker Petroleum’s fuel retail business assets in Victoria.

The $95 million deal covers 46 Milemaker service stations in Melbourne.

Caltex chief executive Julian Segal, earlier in May, said the Milemaker acquisition and Caltex’s Gull New Zealand takeover were part of the company’s plan to mitigate the impact of losing its 13-year alliance with Woolworths when BP struck a $1.79 billion deal with the supermarket giant last December. 

Mr Segal also said the purchases would help transform Caltex from being just a transport fuels provider to being a larger convenience retail offering.