Caltex has confirmed it made a conditional and confidential proposal to buy supermarket giant Woolworths’ fuels business.

The fuel refiner and retailer, which is currently the exclusive supplier of petrol and diesel to Woolworths, had been speculated to be one of the bidders for the fuels business after the struggling supermarket operator in September said it was discussing a possible deal with several interested parties.

“As the sale process is ongoing, and any transaction remains uncertain and is expected to take time to complete, Caltex will update the market as appropriate if there are any material changes to Caltex’s existing wholesale supply arrangements with Woolworths,” the company said in a statement on Tuesday.

“Caltex will maintain financial discipline in this process and remains focussed on the creation of top quartile total shareholder returns, driven by profitable, capital efficient growth.”

Woolies has previously asserted it is evaluating whether or not to dispose of its Petrol business.

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