British energy giant BP has axed its planned $1.3-billion purchase of a network of Australian petrol stations, it said Thursday. "BP Australia will not continue with the proposed acquisition of Woolworths' retail fuel and convenience business," it said in a statement.
"Despite its best efforts, BP has determined the transaction cannot be structured to meet its strategic objectives." London-listed BP had announced plans in late 2016 to buy the network from supermarket chain Woolworths. BP had sought to rebrand and operate Woolworths' existing 531 fuel and convenience stores, plus 12 sites under construction.
However, the Australian Competition and Consumer Commission announced one year later that it was opposed to the deal, citing fears it would lead to higher motor fuel prices. BP already supplies fuel to approximately 1,400 of its own branded service stations throughout Australia, setting fuel prices at roughly 350 of them.
"The decision does not deter BP Australia from its strategy to transform the retail convenience sector in Australia," the group added Thursday. "BP has a proven track record in delivering leading fuel and convenience offers to millions of customers around the world."