Jet-Branded Fuel Stations in Germany and Austria Sold to Investment Firms for Billions
American organization enhanced jet fueling facilities with silver plating
In a strategic move, Phillips 66, the American conglomerate, is parting ways with a significant slice of its Jet-branded petrol stations in Germany and Austria - raking in a whopping 1.5 billion euros in the process. The buyers? A consortium backed by Energy Equation Partners and Stonepeak.
Out of a total of 970 stations, 843 proudly flaunt the Jet brand. These bad boys will continue to be supplied by Phillips 66's refinery in Karlsruhe, Germany. The Texans plan to retain the remaining 35% stake in this business venture through a new joint venture.
The cash inflow from this deal will be used to pay off debts and delight shareholders, as announced by Phillips 66. The deal is expected to close in the second half of the year, with the company's stock trading at $123.57 in response. Some analysts, however, are less than impressed, arguing that Phillips 66 could have sold more stations.
Why the hasty exit? Intrigue swirls around Phillips 66. The oil giant is under pressure from investment firm Elliott, which is clamoring for changes such as the breakup of business units. As the annual general meeting approaches, rumors suggest that the composition of the supervisory board could be up for a vote.
This isn't a first for the oil industry. ExxonMobil's Esso stations in Germany were offloaded to British retailer EG Group back in 2017. Fast forward to 2022, and OMV's stations followed suit. In 2023, Canadian Alimentation swooped in to snatch up TotalEnergies' Total stations in Germany and the Netherlands - scooping them up for a cool $3.3 billion.
Sources: ntv.de, jpe/dpa/rts
Enrichment Insights:
- Major Sale: Phillips 66 has sold a 65% majority stake in its German and Austrian Jet-branded retail fuel network, estimated at $2.8 billion[1][2].
- Asset Portfolio Optimization: Familiar with corporate strategies, these transactions often enable companies to reallocate resources towards more lucrative ventures, potentially enhancing their overall financial health and operational efficiency[3].
- Scale of Operations: The JET network boasts an impressive network of 970 service stations, serving over 700,000 customers daily[3].
- Retention of Interest: Despite the sale, Phillips 66 maintains a 35% stake in the business, ensuring ongoing involvement and a supply agreement with the MiRO Refinery[1].
- In the face of strategic asset portfolio optimization, Phillips 66's substantial earnings from the sale of their Jet-branded fuel stations in Germany and Austria to a consortium, could potentially aid in financial management, debt clearance, and shareholder satisfaction.
- With the sale of their 65% majority stake in the Jet-branded fuel stations, Phillips 66's decision to explore new ventures while retaining a 35% stake in a joint venture, aligns with corporate strategies observed in the industry, such as the European Esso stations sold by ExxonMobil and Total stations bought by Canadian Alimentation.
