Woolworths extends Caltex deal

Company News

by Rachael Jones

Woolworths Group (ASX:WOW) has entered into a long-term strategic alliance with Caltex across convenience, wholesale food, redemption, loyalty and fuel supply.

The alliance will increase the network of fuel sites where customers can redeem their fuel discounts and earn Woolworths Rewards points.

Woolworths Group has also signed a new 15-year wholesale fuel supply agreement with Caltex, locking in a market competitive cost of fuel that is expected to deliver a significant and sustainable earnings uplift to the Woolworths Petrol business.

The pre-tax benefit is expected to exceed $80 million per annum. Woolworths Group will continue to pursue an IPO or sale of its petrol business.

Shares in Woolworths Group (ASX: WOW) 0.12 per cent lower at $17.88.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.