By Mike Cherney

SYDNEY--Global oil giant BP PLC axed a proposed deal to buy Australian grocer Woolworths Group Ltd.'s petrol stations after regulators indicated they would oppose the deal, Woolworths said Thursday.

The deal was valued at about US$1.3 billion when it was announced in December 2016 and would have included more than 500 gas stations, plus some development sites. The transaction would have boosted BP's footprint in Australia, which already included some 1,400 service stations.

The Australian Competition and Consumer Commission, however, announced in December last year that it would oppose the deal. The regulator said it was worried it would lower competition in the retail supply of fuel, noting that BP prices were already higher than Woolworths in major cities and that BP typically increases prices faster than Woolworths.

Woolworths said Thursday that it is still looking at alterative options for its fuels business.

-Write to Mike Cherney at mike.cherney@wsj.com

(END) Dow Jones Newswires

June 20, 2018 18:49 ET (22:49 GMT)

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