Australian fuel supplier Viva Energy has announced the acquisition of OTR Group for AUD 1.15bn ($835m), expanding its retail network to around 1,200 service stations. The deal includes OTR's 127 service stations in South Australia and Victoria, as well as the company's state-of-the-art distribution centre, trucking and logistics business, and convenience retail stores.
OTR Group was founded in 1984 and is a major player in the Australian convenience and petroleum retailing industry. The acquisition will provide Viva Energy with a significant presence in South Australia, where it currently has no retail sites, and will boost its existing operations in Victoria.
The acquisition is expected to bring operational and commercial benefits to both companies. OTR will benefit from Viva Energy's expertise in refining and fuel supply, while Viva Energy will expand its retail footprint and strengthen its position in the Australian market.
According to Viva Energy CEO Scott Wyatt, the acquisition of OTR Group is an important step in the company's growth strategy. He said: "The acquisition of OTR is a strategic and financially compelling opportunity for Viva Energy that supports our growth strategy and strengthens our retail business. We will bring together two strong brands, each with a proud history of serving customers, and create a platform for growth in convenience retailing in Australia."
The acquisition is expected to be completed in the first half of 2023, subject to regulatory approvals.
The deal comes at a time when the Australian petroleum industry is facing increased pressure to shift away from fossil fuels and towards renewable energy sources. Viva Energy has already taken steps to diversify its business, including investing in solar energy and battery storage, and the acquisition of OTR Group is expected to further enhance its ability to adapt to the changing energy landscape.
The acquisition of OTR Group by Viva Energy marks a significant move in the Australian fuel retailing industry and is expected to create new opportunities for both companies to grow and innovate in the coming years.
blogpay
