Ampol (ASX:ALD) has decided to divest its New Zealand and Australia retail electricity business, expecting to receive pre-tax proceeds of about AU$65 million, according to a Tuesday filing with the Australian and New Zealand bourses.

The company also expects group replacement cost operating profit earnings before interest, tax, depreciation, and amortization to rise by an exit run rate at the end of the year of about AU$30 million a year, on top of a previously disclosed AU$50 million cost-cutting program.

The company said its units, Z Energy and Flick Energ,y agreed to sell their New Zealand electricity retail businesses to Meridian Energy (NZX:MEL, ASX:MEZ) in a NZ$70 million deal.

The deal includes an NZ$825,000 monthly transition services agreement for four months with a six-month extension option.

Ampol's shares rose nearly 1% in recent Tuesday trade, while Meridian Energy's shares shed 1%.