The sale helps EG relieve pressure on its debt position while enabling Ampol to expand its presence in the fuel retail market.
The acquisition is one of the most significant moves by Ampol in recent years. It includes $800 million in cash and $250 million in Ampol shares, covering about 500 fuel sites. While the transaction strengthens Ampol’s position, it also raises questions about the company’s future direction amid a shift toward electric vehicles and evolving energy demands.
EG Group initially purchased the portfolio in 2018 from a major retailer for $1.7 billion. Since then, the company has been seeking to divest non-core assets due to rising debt and falling profits. Its pre-tax profit fell sharply from $1.4 billion to $10 million in just one year. EG, which operates across Europe, the US and Australia, now faces $5.3 billion in net debt following years of rapid expansion. The Australian transaction is part of a wider strategy, including a €225 million sale of assets in Italy.
Ampol re-entered acquisition talks 18 months after earlier negotiations stalled. This comes after its 2021 purchase of New Zealand fuel retailer Z Energy for nearly $2 billion. Although some predicted a shift by Ampol towards new energy markets, its latest acquisition indicates a continued focus on traditional fuel retailing. Experts estimate that Ampol could achieve cost synergies of between $65 million and $80 million within two years of the deal.
With this acquisition, Ampol’s network in Australia grows to 1,100 retail fuel locations. The move further concentrates its income toward retail operations and could trigger regulatory review. Ampol may be required to divest certain assets to address competition concerns. Analysts point out that the purchase price equals 5.8 times EBITDA including debt. Although Ampol had concerns about underinvestment in the EG portfolio, the extended timeline of negotiations and current market conditions may have made the deal more attractive.
