TotalEnergies, the French mineral oil group, is planning to sell its service station network in Germany and the Netherlands to Canadian company Couche-Tard. The move is reportedly in response to the planned phasing out of internal combustion engines in Europe, as the company intends to focus on developing new forms of mobility such as hydrogen and electric charging stations.
The service station network in Germany comprises 1,198 filling stations, while there are 392 in the Netherlands. TotalEnergies does not occupy a market-leading position in either country, making it essential to seek the expertise of a convenience store specialist. The company has also stated that it will set up a joint venture with Couche-Tard for its service stations in Belgium and Luxembourg, comprising a total of 619 filling stations.
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The planned transaction, based on an enterprise value of €3.1 billion, includes the service station networks and the fuel card business for business customers. TotalEnergies will retain the charging stations outside the service stations, hydrogen distribution, wholesale fuels, and the AS24 service station network for trucks.
The move comes as the EU plans to phase out internal combustion engines by 2035, leading TotalEnergies to make decisions regarding its fueling station networks in Europe, which have been experiencing revenue losses due to declining fuel sales. The company writes that electric cars are more likely to be charged at home or work, rather than at charging stations at service stations.
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TotalEnergies plans to accelerate the expansion of charging stations on major arteries and in major cities in Europe, with 150,000 charging points planned by 2025. The company has also established its own charging infrastructure subsidiary in Germany and is building a European hydrogen network for trucks in partnership with Air Liquide. The TotalEnergies brand name will remain at the service stations for at least five years.
