WOOLWORTHS Group Limited is entering into a binding agreement to sell its 540 Woolworths-owned fuel convenience sites to EG Group for A$1.725 billion.

EG Group is a global leader in fuel and convenience retailing, operating 4,700 sites across Europe and North America and employing over 28,000 people.

As part of the transaction, Woolworths Group and EG Group have entered into a 15-year commercial alliance covering fuel discount redemption, loyalty and wholesale product supply.

All existing Woolworths Petrol management and operations teams will transfer to EG Group following completion of the sale.

Brad Banducci, Woolworths Group CEO said: “A long-term wholesale food supply arrangement will ensure that EG Group can benefit from competitive product sourcing, including Woolworths’ own brands, to provide a world class convenience offer that will add further scale to Woolworths FoodCo.”

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Mohsin Issa, EG Group Founder and co-CEO said: “For the past 17 years, we have had a vision of becoming a leading petrol station/convenience store operator around the world. This is another exciting international milestone on our growth journey.

“We are the leading independent petrol forecourt retailer in Europe and are having great success in the US. The Woolworths’ assets present a fantastic opportunity to further grow our international footprint and deliver our best-in-class retail experience in a new geography.

“We are committed to investing in the site network, introducing leading retail brands, developing the alliance with Woolworths and working with the exceptional management team.”

The transaction is subject to Foreign Investment Review Board approval. Completion is expected to occur in early 2019.

Founded in 2001 by brothers Zuber and Mohsin Issa, United Kingdom based EG Group is a leading petrol forecourt retail convenience operator which has established partnerships with global brands such as ESSO, BP, Shell, Carrefour, Louise Delhaize, SPAR, Starbucks, Burger King, KFC, Greggs and Subway. The business has an established pedigree of delivering a world class fuel, convenience and food-to-go offer.