Caltex Australia Limited is to spend $95m acquiring Milemaker Petroleum’s retail fuel business assets in Victoria.

The 46 service stations (the majority located in and around Melbourne) will be leased on long term agreements with options up to 30 years.

Adding the portfolio of service stations boosts Caltex’s existing network in Victoria and will provide a stronger platform from which to provide new and improved customer offerings in the convenience marketplace.

The purchase price will be funded from existing facilities and is expected to be earnings per share accretive in the first full year of ownership.

Completion of the transaction is scheduled for 31 January 2017 allowing time for regulatory review and execution of various operational agreements.