Legendary petrol brand Caltex will be SCRAPPED and go back to its original name after licence agreement is axed
- Historic petrol station name Ampol will make a return to Australia’s highways
- It disappeared 25 years ago after a merger with Caltex, but is now coming back
- Its CEO said the name Ampol ‘reflects Australian heritage and expertise’
Well-known petrol station brand Caltex will go back to its original name in Australia, Ampol, after a licence agreement with US oil giant Chevron was scrapped.
After an agreement between the companies broke down, leaving Caltex Australia no choice but to change its name.
There had been a longstanding arrangement for it to use the name Caltex, making it a renowned brand in Australia for 83 years.
Caltex (pictured) runs an oil refinery and more than 500 petrol stations across the country, but its well-known name will soon disappear
Switching from the Caltex name to its original name Ampol will cost the petrol company (pictured) around $165 million
But US giant Chevron owns the rights to the name Caltex and was also a former major shareholder before it sold its 50 per cent stake for $4.62 billion in 2015.
Motorists will now see the return of Ampol, a historic Australian fuel business, which had merged with Caltex in 1995.
Originally known as the Australian Motorists Petrol Company, it was founded in 1936 and eventually merged with Caltex Australia in 1995.
It kept the name Caltex on licence from Chevron.
All Caltex Australia petrol stations (pictured) will be re-branded to their original name, Ampol, after a breakdown in an agreement with US firm Chevron, who own the rights to the name
‘Ampol is an iconic brand in Australia and reflects our deep Australian heritage and expertise,’ chief executive Julian Segal said in a statement.
‘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.
‘The transition to Ampol supports our evolution into a growing regional fuels and convenience business and will allow us to invest and build equity in a company-owned brand as we continue the rollout of our retail strategy.’
The branding change will begin in June and looks likely to cost around $165 million.
But it will save the company $18 million and $20 million each year in trademark licence fees.
Shareholders will have a final say in the change, and can vote at the company’s AGM in May.
Earlier this month, Caltex announced plans to offload 25 petrol stations for $136 million as it navigated a $8.6 billion takeover bid from a Canadian company, Alimentation Couche-Tard – which is French ‘late night food’.
Caltex runs a refinery business, as well as more than 500 petrol and convenience stories across Australia.
The petrol giant (pictured) will now be re-branded under its historic name Ampol, but it must first be voted on by shareholders
According to Chevron’s website, Caltex was formed on July 2 1936 as a joint venture between two American oil companies, which created the California Texas Oil Company – since abbreviated to Caltex.
The company had faced criticism for its compliance with fair working laws, with the Fair Work Ombudsman finding evidence of wage underpayment and threats to workers who complained.
‘We are proud of the high-quality products and services that we have safely and reliably supplied to our valued retail and business customers for more than 100 years,’ its chief executive Mr Segel added.
‘This includes the work we have done in leading the introduction of advanced high-quality premium fuels in Australia, and this product innovation will continue and strengthen under the Ampol brand.’