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TotalEnergies SE has consummated the divestment of its refueling networks in Belgium, Germany, Luxembourg and the Netherlands to Alimentation Couche-Tard Inc. for EUR 3.4 billion ($3.73 billion).
“TotalEnergies will continue to supply fuel to the service stations in these four countries for at least five years, notably from its refineries in Antwerp (Belgium) and Leuna (Germany)”, the French energy giant said in a recent press release.
TotalEnergies also retains operations related to off-station electric vehicle charging, hydrogen retail and wholesale fuel, as well as its AS 24 service station network for trucks.
Under the deal announced 2023, TotalEnergies and the Canadian convenience store chain owner will form a joint venture that will operate 619 service stations in Belgium and Luxembourg. Couche-Tard will have 60 percent ownership while TotalEnergies will hold the remaining 40 percent.
“TotalEnergies is a market leader in these two countries, and the partnership with Couche-Tard will accelerate the transformation of these assets by maximizing their non-fuel sales”, TotalEnergies said in a media statement March 16, 2023.
In Germany and the Netherlands, “TotalEnergies will focus instead on developing new mobilities (electric and hydrogen) in these countries”, the statement said.
“The Company is not a market leader in these two countries, and the expertise of a convenience store retailer is crucial”, it said.
Couche-Tard takes over TotalEnergies’ 1,198 service stations in Germany and 392 service stations in the Netherlands.
Following the European Parliament’s decision to end new sales of combustion engine vehicles by 2035, TotalEnergies decided to offload its fuel retail networks in the four nations, though it had already started divesting service stations 2015. TotalEnergies earlier divested its service station networks in Italy, Switzerland and the United Kingdom.
“This transaction is aligned with TotalEnergies’ strategy to become a multi-energy company and its ambition to get to Net Zero by 2050, together with society”, it affirmed in the March announcement. TotalEnergies has set a goal of cutting its petroleum product sales by 30 percent by 2030.
“Conversely, this strategy is leading TotalEnergies to develop actively in new mobilities”, it added in the March announcement. “In electric mobility, the Company is accelerating growth with a plan to deploy charging points on major roadways and in large cities in Europe. In hydrogen, TotalEnergies is notably developing a European network of hydrogen stations for trucks in partnership with Air Liquide.
“In this context, TotalEnergies has been looking at ways to develop non-fuel revenues in its retail business. Service stations are becoming service hubs with shops, car washes, food services and other convenience features, rather than just fuel outlets.
“For this reason, TotalEnergies decided to partner with Couche-Tard and capitalize on its recognized expertise in operating convenience stores in service stations”.
The transaction had an enterprise value of $3.1 billion. The $3.4 billion received by TotalEnergies upon conclusion included adjustments and excluded tax dues.
Completion was achieved in two steps. The German part of the transaction, valued $2.4 billion with adjustments and before tax, was completed December 2023. The rest, worth a total of $1 billion, was completed in the first week of January 2024.
TotalEnergies’ British competitor Shell PLC earlier sold its household natural gas and power units in Germany and the United Kingdom to Octopus Energy Ltd.
The transaction between Octopus and Impello Ltd., a subsidiary of Shell Petroleum Co. Ltd., follows Shell’s announcement June 2023 it intended to exit its home energy businesses in Germany, the Netherlands and the UK.
Octopus “will start the technical process of migrating 1.3 million home energy customers to its systems in the UK and Germany from the 1st of December”, Octopus said in a news release last month announcing the completion of the transaction. It expects the migration to be completed mid-2024.
