Coles exits fuel retailing business

"Viva is well-placed to make the most of opportunities to grow the Express business into the future, while we will strengthen our focus on our ... supermarket and liquor businesses," CEO Steven Cain said on Wednesday. 

But Coles customers will still be able to access its long standing four cents per litre fuel discount and redeem Flybuys points at the business, which will be rebranded.

Viva will also take over the leases on the sites, which cost Coles around $800 million a year.

Coles said it expects to make a "small gain" on the offloading of the business, which generated sales of $1.1 billion and underlying earnings of $42 million in fiscal 2022.

The deal is expected to be completed in the second half of fiscal 2023, pending regulatory approval.