Caltex Australia

Caltex Australia (Caltex) has entered into an agreement to acquire 302 Mobil service station sites. The acquisition cost to Caltex is in the order of $300 million including estimates for inventories and other settlement costs which will be finalised on completion.

This agreement is subject to Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB) review and clearance which we expect will take some months to complete.

"The acquisition is a good strategic fit for Caltex. It will enable Caltex to grow its business consistent with its long term strategy of being a marketing-led business," Caltex Managing Director and CEO Des King said this morning.

"Today, Caltex is primarily a wholesaler of fuel but a relatively small player in the retail fuel market when compared with Coles Express, Woolworths and BP. This acquisition will allow us to better compete in the retail fuel market with these major players."

Caltex is purchasing the 302 Mobil service station sites as a going concern, providing it with experienced people to help grow the business.

"Caltex will take on more than 1700 employees. We regard employees as a key asset," said Mr King.

"Caltex's long term commitment to a strong balance sheet will enable the acquisition to be funded from internal sources. Caltex remains committed to maintaining a strong balance sheet moving forward," said Mr King.

Media to note: A media conference will be held at Caltex's offices at midday today. For details, please phone the media contact below.

Media contact: Georgie Wells Media Adviser Phone 0412 014 366 Email gwells@caltex.com.au

Investor contact: Simon Hepworth Chief Financial Officer Phone 02 9250 5148 Email shepworth@caltex.com.au