It’s a case of back to the future for Caltex Australia’s service stations as the petrol retailer prepares to revert to the Ampol brand.

The company announced on Monday it would be rebranding its outlets over a three-year period after US oil giant Chevron scrapped a licence agreement for the use of the Caltex name in Australia.

Caltex Australia, which was created out of a merger between Caltex and Ampol in 1995, told the ASX in a statement the transition will begin in June at a cost of about $165 million.

The move is expected to save Caltex Australia between $18 million and $20 million each year in trademark licence fees, with shareholder approval to change the registered company name to be sought at the annual general meeting in May.

“Ampol is an iconic brand in Australia and reflects our deep Australian heritage and expertise,” Caltex Australia chief executive Julian Segal said, adding that the company’s market research indicated that the name “resonates across our key customer segments”.

Ampol, originally known as the Australian Motorists Petrol Company, was founded in 1936.

It was acquired by Pioneer in 1988 before merging with Caltex Australia.

Caltex Australia said its licence agreement with Chevron had been scrapped after 18 months of discussions.

Chevron, which sold its $4.6 billion half-share in Caltex Australia in 2015, last week spent $425 million to acquire Puma Energy’s Australian business.

The Caltex Ampol rebranding follows an announcement this month that Caltex Australia is planning a $500 million capital raising and the sale of an initial 25 petrol stations for $136 million, as it contends with an unsolicited approach from Canadian suitor Alimentation Couche-Tard.

Shares in Caltex Australia had dipped 0.46 per cent to $34.005 by 1155 AEDT on Monday.