AUSTRALIA

Caltex reaches agreement with independents

Caltex last week offered a deal to compensate independent franchisees seeking to halt the spread ...

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The independent Caltex and Ampol retailers won an offer of financial assistance for outlets not included in the discount deal, ending the Federal Court class action brought about on behalf of around 1000 franchise owners.

Although the deal is still to be fully ratified a joint statement issued on Friday shows that Caltex has offered, along with the increased financial assistance, an exit package for any independent station located within five kilometres of a new Caltex-Woolworths branded site that suffers a specified decrease in fuel sales within the first two years.

Under the agreement Caltex will also be released from any further claims by franchisees in the class for similar related matters.

Of the roughly 1600 Caltex and Ampol retailers in Australia the new branding will only apply to 430 sites, offering Woolworths shoppers up to a four cent per litre discount on fuel.

At least 90% of the independent franchisees must accept the arrangement if the settlement is to proceed.

If the required number of class members accept the arrangement, and the Court approves of the settlement, then the matter is expected to be dismissed by the court at a further hearing in September.

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