mobil sells retail chain to 7 11 newswire fyi

*DJ Mobil Oil Australia: Signs Deal With 7-Eleven Australia


SYDNEY (Dow Jones)--Mobil Oil Australia Pty Ltd., a subsidiary of ExxonMobil Australia Pty Ltd., said Thursday it signed an agreement to sell its retail gas business to
7-Eleven Australia, less than a month after Caltex Australia Ltd. (CTX.AU) said it wouldn't proceed with its offer for Mobil's stations after competition regulators blocked its bid.
The sale to 7-Eleven, for an undisclosed sum, includes 295 company-owned or leased stations that are primarily located in metropolitan areas in east Australia.
Caltex's roughly A$300 million offer was for 302 of Mobil's stations but was knocked back because the Australian Competition and Consumer Commission was concerned the acquisition could result in reduced competition at individual stations.
"We are pleased to have been able to reach agreement for the sale of our retail business to 7-Eleven," said Mobil's Fuels Director Kim MacMillan.
"The Australian retail fuels market is highly competitive and challenging. Mobil is now a relatively small participant in that sector of the market following the extensive rationalization of its company-owned service station network over the last few years. We continue to be a major fuel wholesaler to the commercial and industrial sectors of the market, including aviation, regional distributors and other independent resellers."
The deal with 7-Eleven does not include any other part of ExxonMobil Australia's operations. Similarly, Caltex's offer didn't include refining assets.

-By Cynthia Koons; Dow Jones Newswires; +61-2-8272-4691; [email protected]

I have noticed big swings in both directions on very little volume of late. This news confirms that a Super agressive competitor is coming. This together with the Super profits mining tax which is expected to reduce Diesel demand could affect CTX in the near term.