Caltex Australia hopes to compete with Woolworths, Coles

Julian Segal, chief executive of Caltex Australia, dismissed concerns that his firm’s proposed A$300 million (US$252 million) takeover of ExxonMobil’s gasoline stations would limit market competition. Segal said the acquisition, which is being assessed by the Australian Competition and Consumer Commission, will create a significant industry player able to compete with supermarket operators that currently dominate the fuel distribution sector. The transaction is expected to put Caltex Australia’s market share at par with retail giants Woolworths Ltd. and Coles, which each has a 22% market share. (August 30, 2009)