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LONDON (Alliance News) - BP PLC said Thursday its Australian division will not continue with the proposed AUD1.79 billion acquisition of the Woolworths Ltd fuel network.
The deal, which was first announced in December 2016, will not go forward after BP said that "the transaction cannot be structured to meet its strategic objectives".
In December 2017, the Australian Competition and Consumer Commission said it would oppose the deal as it was worried it would "lower competition in the retail supply of fuel".
The regulator noted that BP prices were "already higher than Woolworths in major cities" and that BP typically increases prices faster than Woolworths.
The deal with the Australian supermarket retailer would have seen BP "acquiring, rebranding and operating" Woolworths' 527 fuel and convenience sites and 16 sites that were under construction at the time.
The company reassured that this decision "does not deter BP Australia from its strategy".
Andy Holmes, BP's chief operating officer for Asia Pacific, said: "I am very confident in what the future holds and the delivery of BP's strategy for strong market-led growth to 2021 with a continued focus on safe and reliable operations, increasing efficiency, simplification and modernisation."
BP is one of Australia's leading premium fuel retailers, it said, with around 1,400 branded retail fuel sites across the country, of which approximately 350 are company-owned and the rest owned by independent business partners.
BP shares were trading 0.3% higher at 566.10 pence early Thursday morning.
