BP Share News (BP.)

(ShareCast News) - Oil giant BP has agreed to buy the Australian fuels business of Woolworths Ltd for AUD1.79bn.As part of the deal, which was signed on Christmas eve, BP will buy 527 Woolworths-owned fuel convenience sites and 16 committed development sites as the Australian company focuses on becoming a pure-play supermarket.Tufan Erginbilgic, chief executive of BP Downstream, said: "The development of high-quality, differentiated fuel and convenience offers is a key part of BP's strategy - allowing us to grow our marketing business in important global markets."We are excited to be establishing this strategic partnership with Woolworths, one of Australia's largest supermarket retailers. Globally we have developed a winning retail formula where we partner with strong local brands, like Marks & Spencer in the UK, to provide our customers with a convenience retail offer that meets the needs of their busy lifestyles. The combination of all aspects of this strategic partnership is expected to create significant value for BP."Woolworths chief executive officer Brad Banducci said: "This transaction is a win for Woolworths customers and shareholders. For our shareholders, once the Strategic Partnership is established, it will result in Woolworths having a larger platform for our redemption and reward program, as well as providing us with a unique opportunity to partner with and draw on BP's success in rolling out market-leading convenience food offers globally. "The release of $1.785bn from the sale will be used to strengthen our balance sheet and reinvest in our core businesses - which will further benefit customers and shareholders."Woolworths said the sale of the fuel business is not expected to have a material impact on its group earnings. The transaction and the strategic partnership are subject to customary closing conditions including obtaining regulatory approvals and completion of the deal is not expected to occur earlier than 2 January 2018.At 0900 GMT, BP shares were up 0.2% to 504.20p.