BP walks away from Woolworths retail deal

BP has decided to call of an agreed acquisition of Woolworths' petrol and convenience store network across Australia.

The A$1.8bn deal, which was announced in 2016, would have seen BP add the retailer's 543 service stations to its own 350 outlets across Australia.

Australia's competition watchdog, the ACCC, last December raised concerns about the deal, saying it would hurt consumers in the long run as they would end up paying more for fuel.

The oil major said it had explored "every available option" to overcome the competition regulator's objections, including selling sites and bringing in a third party, without success.

"Despite its best efforts, BP has determined the transaction cannot be structured to meet its strategic objectives," BP said in a statement on Thursday.

But the energy giant said the decision does not put an end to its strategy to "transform the retail convenience sector in Australia", pointing to partnerships it has in other countries.

Woolworths said it will continue "to actively engage with alternative options for its petrol business".