American organization undertook jet fuel station silvering process
Who needs petrolhead friends when you've got investment firms hankering for your Jet fuel stations, big boy? That's right, ol' Phillips 66, the Texan conglomerate known for keeping the ole gas tanks topped off, is shedding some weight in Europe. They're selling a 65% majority stake in their JET-branded fuel stations in Germany and Austria to a gang of deep-pocketed investors for a cool 1.5 billion euros.
This gang of investment heavies consists of a consortium backed by Energy Equation Partners and Stonepeak, and they're drooling at the prospect of bothering road-trippers across Europe with their services. The sale includes a whopping 970 stations, 843 of which operate under the JET brand. They'll keep getting their juice from the Phillips 66 MiRO refinery in Karlsruhe. The Texans want to stay in the game and retain a 35% stake through a new joint venture.
This sale is part of Phillips 66's nifty little financial restructuring strategy to pay off shareholders and clear that pesky debt. The company expects to close the deal sometime in the second half of the year, and their stock took a one percent plunge to $123.57 as a consequence. The suits at TD Cowen criticized Phillips 66 for not selling all the stations, but, hey, they can't have it all, right?
Phillips 66 is feeling the heat from Elliott, an investment firm known for twisting companies into knots until they restructure and optimize their assets. The stake sale goes down just days before the annual general meeting, where a whole host of shenanigans, including the make-up of the supervisory board, will be up for vote.
Other companies have caught the fuel station divestment fever in recent years. ExxonMobil's Esso fuel stations went to the british retailer EG Group back in 2017, and OMV's fuel stations in 2022. Last year, the Canadian Alimentation laid down a cool $3.3 billion for TotalEnergies' fuel stations in Germany and the Netherlands.
Sources: ntv.de, jpe/dpa/rts
Enrichment:
- In truth, the acquisition provides these investors with a significant presence in the European retail fuel market and a substantial market share. The JET brand operates a large network of 970 service stations, offering a considerable customer base across Germany and Austria.
- By acquiring a majority stake in Phillips 66's European operations, the investment firms bolster their portfolio and expand their involvement in the energy sector. This strategic move allows them to capitalize on the European market's demand for fuel and related services.
- The deal entails forming a joint venture, providing Phillips 66 with a 35% stake to maintain some control over the operations and ensuring a stable supply through its MiRO refinery. This partnership helps create strategic partnerships and synergies between the acquiring firms and Phillips 66.
Community policy might require clear disclosure about the change in ownership of Phillips 66's JET-branded fuel stations, given the impact on employment and business. The investment in these stations by a consortium of firms, including Energy Equation Partners and Stonepeak, also brings questions about potential changes in finance and operations, particularly as it pertains to the supply of fuel and related services.
