Fuel supplier and retailer Caltex will sell its Sydney bitumen business to Puma Energy, a subsidiary of Dutch commodities trader Trafigura Beheer BV.
Caltex began supplying bitumen, which is a by-product of the refining process, to the NSW road construction industry after deciding to close its Kurnell refinery in 2010.
The bitumen business includes an agreement to operate the Port Botany Bitumen Terminal for Caltex.
Caltex Australia managing director Julian Segal said bitumen was no longer part of the company's core business.
"The decision to divest is consistent with our strategy and it makes operational and financial sense," Mr Segal said.
Caltex did not put a figure on the deal.
The sale is subject to approval by the Foreign Investment Review Board and it is planned to be completed by the end of the year.