The transaction will give Z Energy ownership of the Caltex business in New Zealand, which includes 147 Caltex service stations and 73 diesel fuel filling stations.

The deal is separate to news that Chevron sold an 11.4% stake of the BP-led refining NZ joint venture (Z Energy 15%) for more than $NZ82 million to institutional investors.

"The proposed acquisition excludes Chevron's upstream interests and Chevron New Zealand recently sold its shareholding interest in Refining NZ," Z Energy announced this morning.

While Chevron has said the Z Energy deal was part of balancing its global portfolio, Z Energy CEO Mike Bennetts said his company was the best positioned and most logical buyer of the Caltex business.

"Like the creation of Z five years ago, this acquisition bucks the trend of Kiwi companies being sold offshore," he said.

"Instead, this transaction represents another example of bringing the New Zealand operations of a multinational company directly into the ownership and exclusive operation of a company that has recently been recognised as having one of the strongest and most trusted corporate reputations in New Zealand."

He also said there will be new jobs created as we "bring back roles from offshore".

The deal, which is subject to regulatory approval, will give Z Energy more than 350 service stations with the company acquiring 210 off Royal Dutch Shell in 2010.

"The New Zealand transport fuels market is and will remain highly competitive," Bennetts said.

"Z and Caltex are only two players in a very dynamic marketplace in which there are currently five importers of refined fuel and crude oil and where motorists have the choice of at least a dozen fuel retailers."

Z Energy aims to raise $NZ185 million from shareholders to help fund the acquisition which is expected to yield $NZ25 million in synergies from 2017 and immediately boost earnings.