TotalEnergies sells its retail fuel networks in Germany, Netherlands

TotalEnergies has agreed to sell its retail fuel networks in Germany and the Netherlands and form a joint venture for its pumps in Belgium and Luxembourg under a Eur3.1 billion ($3.3 billion) deal with Canadian convenience-store operator Couche-Tard, the companies said March 16.

TotalEnergies said the deal is part of hitting a target of reducing its petroleum product sales by 30% by 2030 so that its fuel sales and refining throughput do not exceed its oil production.

Under the deal, TotalEnergies will sell 100% of its networks in Germany and the Netherlands to Couche-Tard, covering a total of 1,590 service stations. TotalEnergies and Couche-Tard will also form a 40:60 joint venture to own and operate 619 service stations in Belgium and Luxembourg, they said.

TotalEnergies said the 2,209 fuel pumps in the four countries will remain under the TotalEnergies brand as long as it supplied fuel for the sites for at least five years from its refineries in Antwerp (Belgium) and Leuna (Germany).

TotalEnergies is a market leader in Belgium and Luxembourg and the partnership with Couche-Tard will accelerate the transformation of these assets by maximizing their non-fuel sales, it said

The company is not a market leader in Germany and the Netherlands and the "expertise of a convenience store retailer is crucial" for its retail segments, TotalEnergies said.

"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," the company said in a statement.

Decarbonization drive

Since 2015, TotalEnergies has already divested its service station networks in Italy, Switzerland, and the UK.

Noting the EU's net-zero emission targets and hopes by European policymakers to end new sales of internal combustion-engine cars by 2035, TotalEnergies said it will focus instead on developing new electric and hydrogen mobility projects.

"These major trends are prompting TotalEnergies to make decisions regarding the future of its retail networks in Europe, which will see their fuel-related revenues decline, while electric vehicles will charge more often at home and at work, and less often in service stations," TotalEnergies said.

TotalEnergies said will retain its activities related to off-station electric vehicle charging (charging hubs), hydrogen retail and wholesale fuel business, as well as the AS 24 service station network for trucks.

TotalEnergies and Couche-Tard aim to close the transaction by the end of 2023.