Ampol to Acquire EG Group's Local Gas Stations for A$1.1 Billion

Ampol Ltd. shares surged 9.5% in Sydney after announcing a planned A$1.1 billion acquisition of EG Group's local gas stations. Analysts welcomed the deal, with JPMorgan and Morgan Stanley raising their recommendations on Ampol. The acquisition is expected to complete in mid-2026, funded by debt facilities and A$250 million in shares. Jefferies analysts called the deal a "resounding success" similar to Ampol's acquisition of Z Energy Ltd. in 2021.

Ampol Ltd.'s shares surged by 9.5% in Sydney on Thursday, August 15, 2025, following the announcement of the company's planned acquisition of EG Group's local gas stations for A$1.1 billion ($714 million). The stock gained as much as A$29.64, marking its most significant increase since May 2021 [2].

The acquisition, expected to complete in mid-2026, will be funded through a combination of debt facilities and A$250 million in shares. JPMorgan Chase & Co. analysts Bryan Raymond and Christina Kim raised their recommendation on Ampol to overweight from neutral, with a price target of A$35.90, noting the complementarity of the EG business to Ampol [2]. Morgan Stanley analysts Rob Koh and Samantha Edie also expressed positive sentiments about the acquisition, labeling the price as "balanced" and stating that it could be a positive for the stock [2].

The deal echoes Ampol's acquisition of Z Energy Ltd. in 2021, which was a "resounding success" despite initial skepticism, according to Jefferies Financial Group Ltd. analysts Michael Simotas and Naveed Fazal [2]. "Management has again been patient and financially disciplined, paying a sensible price and employing a pragmatic capital structure," they said.

Ampol has been actively acquiring fuel networks in recent years, including Z-Energy and SeaOil, although some assets such as Gull NZ were later divested. The acquisition of EG Group's Australian service station portfolio could elevate Ampol's standing alongside Viva Energy, positioning the two as Australia's largest petrol station operators with around 1,300 sites each [1].

The company's shares were placed in a trading halt at the start of the day's session. The deal, which is expected to be finalized soon, will be financed through a combination of cash and shares, with UBS advising Ampol [1].

References:
[1] https://www.reuters.com/business/energy/ampol-nears-656-million-deal-buy-eg-groups-australian-fuel-stations-afr-reports-2025-08-14/
[2] https://www.bloomberg.com/news/articles/2025-08-15/ampol-surges-as-analysts-upbeat-on-a-1-1-billion-gas-station-buy