The huge change coming to petrol stations around Australia
The Ampol brand will return to the nation's roadways after US oil giant Chevron told Caltex Australia it can no longer use the Caltex name.
Caltex Australia this morning said it would rebrand its network of more than 800 petrol stations Ampol over the next three years.
It follows Chevron terminating its license agreement with the fuel retailer which allows it to use the Caltex name.
Chevron returned to the Australian market last week, shelling out $425 million for the Puma Energy petrol station chain.
Today's announcement raises the possibility that Puma's 360 petrol stations will be rebranded as Caltex.
Caltex Australia was created out of a merger between Caltex and Ampol in 1995.
Chevron sold its 50 per cent stake in Caltex for $4.62 billion in 2015.
Caltex will spend $165 million rebranding its network to Ampol but save between $18 million to $20 million in annual licence fees it pays Chevron.
Chief executive Julian Segal said the change to the Ampol brand better reflects the company's proud Australian history, independent operations and position as the country's leading transport fuels provider.
"Ampol is an iconic brand in Australia and reflects our deep Australian heritage and expertise," he said.
"Our market research confirms that Ampol continues to be regarded as a high-quality and trusted brand by Australian consumers and resonates across our key customer segments."
Caltex's licence agreement with Chevron grants is exclusive use of the Caltex brand for the next two years.
Caltex said it will begin rebranding its network after six months and finish the process within the next three years.
The rebrand is the latest bout of corporate activity in the nation's petrol station sector as majors such as Caltex and BP restructure their property and convenience assets.
Caltex is also fielding a $8.6 billion takeover offer from Canadian convenience retailer Alimentation Couche-Tard.
Shares in Caltex dropped 0.3 per cent to $34.06 in the opening minutes of trade this morning.
It is not clear how the change will impact fuel prices but the added competition could benefit motorists.