Coles sells petrol stations to Viva Energy, FMG pledges $6.2b to go green and OZ Minerals invests in West Musgrave project
Coles has handed control of its fuel sites to Viva Energy seven years earlier than an original deal.
Australian retail giant Coles Group (ASX: COL) has announced it will sell its 710 Coles Express fuel sites to Viva Energy Group (ASX: VEA) to prioritise the group’s supermarket and liquor business moving forward.
Viva Energy will assume ownership, as well as controlling and operating responsibilities of the petrol stations across the nation.
As per the ‘Fuel and Convenience Alliance’ agreed on by both parties, Coles would have ultimately handed over the control of its sites at the end of 2029, with the agreement now ending as a result of deal completion.
Coles chief executive officer Steven Cain said the deal is a complementary for both parties.
“We knew that we had an asset that by 2029 the agreement would end, so it’s ended up being a win-win,” he said.
“This is a business that Viva wants to own, integrate and invest in, which will be good for their customers but will also be good for Coles customers over time.”
Coles have urged it won’t completely step away, with supermarket customers still eligible for the $0.04 per litre fuel docket deal across the network.
Also, the near 6,000 workers employed by Coles Group will be transferred to Viva Energy following the completion of the deal.
OZ Minerals
OZ Minerals (ASX: OZL) has announced it will invest $1.7 billion into a copper-nickel mine in remote Western Australia.
The South Australia-based company said the investment “unlocks one of the largest undeveloped nickel projects in the world,” and can generate $9.8 billion over its 24-year operating life.
It expects first production from the mine in the second half of 2025.
The news adds further troubles to BHP Group’s (ASX: BHP) takeover attempts, after its $8.4 billion bid was rejected back in August.
OZ is open to offering up a minority share in the mine through a strategic partnership.
OZ Minerals chair Rebecca McGrath said the move is a significant step forward for the company.
“The Board’s approval of West Musgrave is a fundamental step towards realising OZ Minerals’ strategy to evolve into a modern minerals producer set to supply global copper and nickel markets as the world moves into the de-carbonisation and electrification era,” she said.
Fortescue Metals Group
Fortescue Metals Group (ASX: FMG) said on Tuesday it will spend around $6.2 billion to eliminate the use of fossil fuels and aim to achieve “real zero terrestrial emissions” across its iron ore operations within the next eight years.
FMG founder Andrew “Twiggy” Forrest has called on other industry leaders to follow suit.
“We really must be taking this super seriously now,” he said.
“So, my challenge to industrial leaders all over the world is: take the first step.”
A bulk of the investment will be used between 2024 to 2028, installing a further 2-3 gigawatts of renewable energy generation and battery storage.
Once the plan is in place, FMG will become the world’s first heavy industry company of its size to go green by 2030.
“This is an investment that I think every company in the world ought to make, and an investment which, now that you can see that it can be done, every heavy industry should step out and do,” Mr Forrest said.
Link Administration
Link Administration’s (ASX: LNK) takeover deal with Canada’s Dye & Durham is in doubt again after Link’s British subsidiary was hit with a further £50 million (A$85 million) fine by a British financial regulator over the Woodford funds collapse in 2019.
Link said the United Kingdom’s Financial Conduct Authority (FCA) issued its British subsidiary Link Fund Solutions with “an appropriate” penalty of £50 million after completing its Woodford funds investigation.
This adds to the £306 million (A$520 million) already issued by the FCA as an appropriate “restitution payment” over the matters.
Link Fund Solutions has been asked to set aside $521 million for possible future penalties relating to the collapse of a Woodford investment fund in 2019 which Link administered.
Link has since announced it is entering a trading halt as of Friday.
Atlas Arteria
IFM Investors has doubled down on its frustration over Atlas Arteria’s (ASX: ALX) $2.9 billion purchase of the Chicago Skyway, saying it has wiped $1 billion in value from the Australian company.
IFM is Atlas Arteria’s biggest investor, with a stake of around 19%.
On Wednesday, an IFM spokesman expressed his concern over the completion of the deal.
“As a major shareholder acting for investors who represent the retirement savings of millions of Australians, we are deeply concerned that the Atlas Arteria board and management has precipitated the destruction of around $1 billion in value from the company,” he said.
The company originally tried to halt the deal going through at the time, sending a letter to the company’s board stating its objections.
Despite this, IFM urged its investors in a letter on Friday that it still sees Atlas Arteria as “an attractive asset”, with the potential to generate returns to investors.
“We remain singularly focused on the preservation of value of IFM Global Infrastructure Fund’s holdings in the company,” it stated.