TotalEnergies announces shedding 1,600 service stations in Europe to prepare for the end of thermal power in 2035


TotalEnergies announced Thursday, March 16, to sell nearly 1,600 service stations in Germany and the Netherlands to the Canadian food and fuel distribution group Couche-Tard, to better prepare for the end of sales of thermal vehicles in Europe, in 2035.

The vote of the European Parliament in mid-February providing for the ban on sales of new thermal vehicles in Europe in 2035, in particular for the benefit of the development of electric vehicles “encourages TotalEnergies to make decisions about the future of its networks in Europe, which will be faced with a loss of fuel-related income, while electric vehicles will be recharged mainly at home or at work and less at stations”explains the oil giant in a press release.

In Germany and the Netherlands, TotalEnergies announces that it “will sell to Couche-Tard all of its service station networks, i.e. 1,198 stations in Germany and 392 in the Netherlands”countries in which the group says it is not a leader and where “the expertise of a local retailer is essential”.

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TotalEnergies “will therefore focus on the development of new forms of mobility (electric and hydrogen) in these countries”specifies the group, before listing the off-station electric charging activities, the distribution of hydrogen, the wholesale of fuels and the network of fuel distribution stations for AS24 professionals.

The project should be finalized before the end of 2023

In Belgium and Luxembourg, where the French company claims to be the leader, a joint venture between TotalEnergies (40%) and Couche-Tard (60%) will be created to operate 619 service stations and accelerate “the transformation of these two networks by maximizing their sales excluding petroleum fuels”.

The stations in the four countries will keep the TotalEnergies brand as long as they are supplied with fuel by the oil group “for at least five years”specifies the latter.

The proposed transaction between the two groups “is based on an enterprise value of 3.1 billion euros”specifies TotalEnergies, without detailing this amount, and “concerns service station networks and fuel card activities for professional customers”.

For TotalEnergies, this operation is therefore part of its strategy of “transformation into a multi-energy company and in its ambition to achieve carbon neutrality by 2050”, according to the press release. The project should be finalized before the end of 2023, subject to the approval of the competition authorities.

Since 2015, TotalEnergies has sold its service station networks in Italy, Switzerland and the United Kingdom.

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The World with AFP


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