BP sells oil retail outlets in South Australia

BP Australia has reached an agreement with Peregrine Corp. for the sale of 12 regional petrol stations and 16 metropolitan stations.
The transaction for the regional sites has been completed, but the sale of the 16 metropolitan stations is subject to approval from the Australian Competition and Consumer Commission (ACCC).
The sale was motivated by BP’s inability to expand sufficiently in the Adelaide market.
“It’s a peculiarity of South Australia, there are 200 petrol stations in Adelaide and of those BP only had 16 company-owned sites, so it’s impossible to grow,” said Jamie Jardine, BP Australia spokesperson. “This sale is a South Australia-only initiative and it simplifies our operations and allows us to focus on areas of growth,” he says.
Jardine says Peregrine have been business partners with BP for many years as BP has been supplying Peregrine’s On the Run-branded stations with petrol. The service stations being sold will continue to sell BP-branded fuels.
Peregrine Chief Executive Yasser Shahin told The Australian Financial Review that the value of the acquisition was “in the tens of millions.” In 2010, Peregrine also purchased Mobil’s 29 South Australian service stations, after 7-Eleven acquired the Mobil business.
Peregrine Corp., which also operates the retail chain Smokemart, is owned by one of South Australia’s wealthiest families, the Shahins. The purchase is expected to generate A$1.2 billion (US$1.18 billion) in revenues this financial year.