Viva Energy Purchases Shell Aviation Australia

Viva Energy Purchases Shell Aviation Australia

Viva Energy Australia Pty Ltd (“Viva Energy”) has signed an agreement with Shell to purchase its aviation business, Shell Aviation Australia Pty Ltd (“SAA”), for a total transaction value of approximately USD 250 million.

Viva Energy Chief Executive Officer, Scott Wyatt, said he is excited about this latest acquisition, which is highly complementary to the current business.

“We have been the exclusive supplier of jet fuel to Shell Aviation Australia over the past two years so this purchase enables us to expand into the airports and provide direct supply to customers which is very exciting for us,” said Scott.

“Given its size and geographic isolation, Australia is heavily dependent on air travel to move people and freight efficiently around the country and the world. Demand for air travel continues to grow strongly which means airports and airlines need fuel suppliers who are prepared to invest in infrastructure and help them grow,” he said.

“We already see a lot of opportunities to grow the aviation business by expanding supply chain capacity to major airports and increasing our presence in the smaller airfields, which support regional communities throughout the country.

“While Melbourne will naturally be a key focus given our refinery in Geelong, we expect to be a supplier to the new Badgerys Creek airport in Sydney and see opportunities to build on Shell’s position at other key airports and at regional airfields.

“This acquisition will see Viva Energy supply more than 50 airports around the country. Viva Energy will bring a fresh approach to this business and looks forward to working with our employees, customers and airports to pursue the opportunities we see with a new vigour.”

The transaction remains subject to regulatory approvals; if those processes proceed on time it is expected to complete the acquisition by mid-2017. Employees of Shell Aviation Australia will remain employed by the company as it transfers to new ownership.

“We’ve worked with many Shell Aviation employees for a number of years and we will work closely with Shell to help make the transition to Viva Energy a smooth and welcoming experience for employees and customers alike.”