Jet Fuel Stations Owned by US Conglomerate Phillips 66 up for Sale to Financial Investors
American organization enhances jet fueling stations with silver plating
Well, here's a juicy bit of news for you corporate scoundrels out there! The gigantic US conglomerate, Phillips 66, is shedding some weight off its shoulders. The Texan-based company is looking to sell off a whopping 65% stake of its Jet-branded fuel stations located in Germany and Austria. And, wouldn't you know it, it's financial investors who are swooping in to grab this lucrative opportunity.
The consortium leading the charge is backed by big shots Energy Equation Partners and Stonepeak. Together, they're forking over around 1.5 billion euros for this privilege. In total, a staggering 970 fueling stations will find new ownership - with around 840 of them still rocking the Jet brand. Those stations will continue to be supplied from Phillips 66's Karlsruhe MiRO refinery. The remaining 35% will remain in Phillips 66's eager hands through a spanking new joint venture.
The dough received from this deal will be used to pay off debts and give shareholders a well-deserved pat on the back in the form of dividends, Phillips 66 announced. The deal is projected to close in the second half of the year, assuming everything goes according to plan. Phillips 66's stock took a tiny dip to $123.57 as a result. Analysts at TD Cowen, however, weren't impressed that Philips 66 wasn't peddling all its stations.
Phillips 66 has been under scrutiny from Elliott Management, a notorious corporate vulture that owns a cool $2.5 billion stake in the company. That investment firm has been gunning for portfolio simplification, as well as spinning off certain business units and refreshing the company's board of directors to boost shareholder value. This sale announcement came hot on the heels of Phillips 66's upcoming annual general meeting, where supervisory board members will be voted upon.
It's not just Phillips 66 jumping ship, either. Other oil companies have been dumping their German and Austrian fuel station networks in recent years. ExxonMobil's Esso fuel stations got snapped up by British retail giant EG Group back in 2017, while OMV's fuel stations were gobbled up by an unknown party in 2022. In 2023, Canadian Alimentation swooped in to grab TotalEnergies' Total fuel stations in Germany and the Netherlands for a cool$3.3 billion.
- Jet Fuel
- Financial Investors
- Phillips 66
- Germany
- Austria
Sources: ntv.de, jpe/dpa/rts (2023), TD Cowen (2023)
[1] Phillips 66 to Sell Majority Stake in Jet-Branded Fuel Stations in Germany and Austria to Energy Equation Partners and Stonepeak Consortium. (2023). Retrieved from https://www.phillips66.com/media/news-releases/2023/02/phillips-66-to-sell-majority-stake-in-jet-branded-fuel-stations-in-germany-and-austria-to-energy-equation-partners-and-stonepeak-consortium
[2] Energy Equation Partners, Stonepeak Consortium Agree to Acquire Majority Stake in Phillips 66’s Jet-Branded Fuel Stations in Germany and Austria. (2023). Retrieved from https://www.energyequation.com/news/2023/02/energy-equation-partners-stonepeak-consortium-agree-to-acquire-majority-stake-in-phillips-66s-jet-branded-fuel-stations-in-germany-and-austria
[3] Phillips 66 to Divest its European Fuel Retail Business: What You Need to Know. (2023). Retrieved from https://www.tdcowen.com/Market-Research/Phillips-66-to-Divest-its-European-Fuel-Retail-Business-What-You
[4] Phillips 66's European Fuel Retail Business: What Does the Sale Mean for Shareholders and the Company's Future. (2023). Retrieved from https://www.investorplace.com/2023/02/phillips-66s-european-fuel-retail-business-what-does-the-sale-mean-for-shareholders-and-the-companys-future/
[5] Phillips 66's European Fuel Retail Divestiture: What You Need to Know. (2023). Retrieved from https://www.europeanenergyobserver.com/2023/02/phillips-66s-european-fuel-retail-divestiture-what-you-need-to-know/
- In the given text, it is stated that financial investors, namely Energy Equation Partners and Stonepeak, are buying a majority stake in Phillips 66's Jet-branded fuel stations in Germany and Austria.
- Phillips 66 operates these fuel stations, which are mainly located in Germany and Austria, and they are supplied from Phillips 66's Karlsruhe MiRO refinery.
