Ampol has announced the acquisition of EG Australia for $1.1 billion in a deal involving both cash and shares. This transaction includes the purchase of approximately 500 service stations across Australia, strengthening Ampol’s position in the retail fuel market. The move is part of the company’s strategy to expand its footprint and enhance its retail and convenience offerings.
According to 9news, the acquisition is seen as a logical step, given Ampol’s existing relationship with EG Australia in fuel supply and branding. Regulatory approval is required, and the deal could be finalized by mid-2026.
Ampol Acquires EG Australia for $1.1 Billion
Ampol, one of Australia’s largest service station chains, has confirmed the acquisition of EG Australia for a significant $1.1 billion in cash and shares. This move involves taking over EG’s network of approximately 500 service stations across Australia. The deal will bolster Ampol’s market position and ensure its continued relevance in a changing fuel landscape.
The acquisition is a significant step forward in Ampol’s strategy to expand its footprint in both the fuel and convenience retailing sectors. According to Ampol’s CEO and managing director, Matt Halliday, the deal is a logical progression given Ampol’s multi-year relationship with EG Australia.
The proposed EG Australia acquisition makes sense for Ampol. It is a business and market we understand well, given our multi-year relationship with them, including fuel supply and brand license agreements – Said Halliday.
We are uniquely placed to leverage our demonstrated capability as a known and trusted brand in fuel and convenience retailing.
Ampol’s Strategic Expansion
Ampol has had a longstanding relationship with EG Australia, supplying the company with approximately 2.3 billion liters of fuel annually. This acquisition allows Ampol to take a direct stake in EG’s network, which aligns with its goal of further expanding its presence in the retail fuel market.
By acquiring EG Australia, Ampol gains access to a well-established retail network that already operates under the Ampol brand. This synergy will likely drive future growth for both parties in an increasingly competitive industry.
The decision to acquire EG is not just about increasing market share, but also about Ampol’s confidence in its established capabilities.
We are uniquely placed to leverage our demonstrated capability as a known and trusted brand in fuel and convenience retailing – Halliday added.
The acquisition underscores Ampol’s strategy to maintain its dominance in the Australian fuel market, where it has become a household name.
The Changing Fuel Market in Australia
The Australian fuel market is currently undergoing significant transformation, influenced by changing consumer habits and new technologies. The rise of electric vehicles (EVs), the growing trend of working from home, and more efficient vehicles have collectively contributed to a decline in fuel consumption.
EG Group, the UK-based parent company of EG Australia, is facing financial strain from these shifts. EG acquired the Woolworths Petrol business in 2019 for $1.73 billion, including 540 outlets, but now faces a substantial loss in the sale to Ampol.
With more Australians transitioning to electric vehicles, the demand for traditional petrol has dropped, further affecting profitability. Ampol’s acquisition of EG is seen as a strategic move to adapt to these market changes, positioning the company for future growth in a shifting industry.
Regulatory Approval and Future Prospects
Before Ampol can finalize the acquisition, the deal must be approved by the Australian Competition and Consumer Commission (ACCC), which ensures that the merger does not negatively impact market competition. In response to concerns over this, Ampol has agreed to sell 20 of the 500 stations to satisfy the ACCC’s requirements. This measure will likely help avoid any potential competition issues.
If approved, the deal is expected to close by mid-2026, and Ampol will solidify its position as one of the dominant players in the Australian fuel market. The acquisition not only represents an expansion of Ampol’s retail footprint but also signals the company’s readiness to evolve with the changing dynamics of the fuel industry, positioning itself for long-term success in a competitive landscape.
