By Mike Cherney

SYDNEY--Gas-station company Caltex Australia Ltd. (CTX.AU) said Monday that it would transition to the Ampol brand and change its company name after Chevron Corp. terminated the license agreement for the Caltex brand.

The transition is planned over a three-year period and is expected to cost Caltex 165 million Australian dollars (US$114 million).

However, the transition should ultimately save Caltex A$18 million to A$20 million in annual trademark license fees, which is in addition to cost-saving initiatives previously announced by the company.

Caltex said it would seek shareholder approval to change its corporate name at the annual shareholder meeting in May.

"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," said Caltex Chief Executive Julian Segal. "The transition to Ampol also supports our evolution into a growing regional fuels and convenience business."

Caltex said the termination of the license agreement with Chevron followed 18 months of discussions.

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

(END) Dow Jones Newswires

December 22, 2019 17:30 ET (22:30 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
Caltex Australia (ASX:CTX)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more Caltex Australia Charts.
Caltex Australia (ASX:CTX)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more Caltex Australia Charts.