Ampol shares experienced a significant surge on Friday, climbing nearly 7 per cent after the company announced its agreement to acquire EG Group’s Australian service station portfolio for $1.1 billion. This strategic acquisition is set to significantly bolster Ampol’s market presence, positioning it on par with its primary competitor, Viva Energy. Ampol is a leading Australian petroleum company, operating as a fuel supplier and convenience retailer. They provide essential energy solutions across the country.
The acquisition will be funded through a combination of existing debt facilities and the issuance of new shares. Approximately $800 million will be sourced from Ampol’s existing debt facilities, while $250 million will be covered through the issuance of shares to EG Group. As part of the acquisition process, Ampol intends to divest around 20 sites from the combined portfolio. This move is aimed at addressing potential competition concerns and securing the necessary approvals from the Australian competition watchdog.
