Credit: REUTERS/Mick TsikasAdds details, background
Sept 21 (Reuters) - Coles Group COL.AX has agreed to sell its fuel and convenience retailing unit to power producer Viva Energy VEA.AX for A$300 million ($200.64 million), as the No.2 Australian grocer shifts its focus on omnichannel supermarket and liquor businesses.
The companies said on Wednesday that Coles Express will be transitioned and operated as an independent business unit within Viva Energy, which will own and operate 710 sites nationally.
In fiscal 2022, Coles Express generated sales revenue of A$1.13 billion, about 2.9% of the company's total consolidated revenue of A$39.37 billion.
"Viva is well-placed to make the most of opportunities to grow the Express business into the future," Coles Chief Executive Officer Steven Cain said in a statement.
The deal is expected to close in the second half of FY23 subject to Australian Competition and Consumer Commission and Foreign Investment Review Board's approval, Viva said.
($1 = 1.4952 Australian dollars)
(Reporting by Himanshi Akhand in Bengaluru; Editing by Shinjini Ganguli)
((Himanshi.Akhand@thomsonreuters.com;))
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