The sale of TotalEnergies service stations was announced on Thursday by the company. This sale concerns nearly 1,600 service stations in Germany and the Netherlands and will be made to the Canadian group Couche-Tard. This transaction is part of TotalEnergies’ strategy to prepare for the end of new combustion vehicle sales in Europe in 2035, as set out in the European Parliament’s vote last February.
Motivations for the sale of TotalEnergies service stations
The ban on sales of new combustion vehicles in Europe in 2035, passed by the European Parliament in February, is prompting TotalEnergies to make decisions about the future of its networks in Europe. These networks will face a loss of fuel revenue as electric vehicles charge mostly at home or at work and less at stations. This is why TotalEnergies has decided to sell its entire service station network in Germany and the Netherlands to Couche-Tard.
TotalEnergies explains that the sale of these service stations to Couche-Tard is also motivated by the fact that the group would not be the leader in Germany and the Netherlands, and that “the expertise of a local retailer is essential”. TotalEnergies will therefore focus on the development of new forms of mobility (electric and hydrogen) in these countries, in particular on off-station electric recharging activities, hydrogen distribution, wholesale fuel sales and the AS24 network of fuel distribution stations for professionals.
Creation of a joint venture in Belgium and Luxembourg
In Belgium and Luxembourg, where TotalEnergies claims to be the leader, a joint venture will be created between TotalEnergies (40%) and Couche-Tard (60%) to operate 619 service stations and accelerate “the transformation of these two networks by maximizing their sales outside petroleum fuels”. The stations in the four countries will keep the TotalEnergies brand as long as they are supplied with fuel by the oil group “for at least five years”, the latter said.
3.1 billion sale for the 1,600 TotalEnergies service stations
The proposed transaction between the two groups “is based on an enterprise value of €3.1 billion”, TotalEnergies said without giving details of the amount, and “covers the service station networks and the fuel card activities for business customers”. For TotalEnergies, this transaction is in line with its strategy of “transforming into a multi-energy company” and its ambition to become carbon neutral by 2050.
The proposed sale of the service stations to Couche-Tard is expected to be finalized before the end of 2023, subject to the approval of competition authorities. It should be noted that TotalEnergies has already divested its service station networks in Italy, Switzerland and the UK since 2015.
