Combustion off and climate targets
Total sells its gas station network
03/16/2023, 7:32 p.m
The Totalenergies group is reorganizing its petrol station business in four European countries. In some cases, the French are completely repelling their gas pump network or getting a partner on board. Among other things, the company wants to improve its carbon footprint.
With a view to the planned end of combustion engines in Europe in 2035, the French company Totalenergies wants to sell its network of filling stations in Germany and the Netherlands to the Canadian company Couche-Tard. The package includes about 1,200 gas stations in Germany and 400 in the Netherlands, said the energy company. Totalenergies wants to set up a joint venture with the Canadian convenience store operator for around 600 filling stations in Belgium and Luxembourg. “The filling stations in the four countries will continue to operate under the Totalenergies brand as long as the fuel is supplied by the company, but for at least five years,” it said.
As both companies announced, Alimentation has submitted an offer to Couche-Tard in which the business in four countries is valued at 3.1 billion euros. Totalenergies wants to “focus on the development of new mobility with electric and hydrogen drives” in Germany and the Netherlands, where it is not the market leader. These included charging stations outside of petrol stations and the sale of hydrogen. Through the partnership in Belgium and Luxembourg, Totalenergies aims to maximize non-fuel sales at the service stations; the company is the market leader in both countries.
lawsuit by environmentalists
Totalenergies has divested itself of gas stations in Italy, Switzerland and Great Britain since 2015. The sale of the gas stations is part of the strategy “to transform into a multi-energy company and to achieve CO2 neutrality by 2050,” it said. This does not include indirect emissions – such as those caused by burning the fuel.
According to Totalenergies, it emitted around 454 million tons of greenhouse gases in 2021, 400 million of them indirectly. Several environmental organizations have sued the company for “fraudulent business practices” in France with a view to what they consider to be misleading climate promises.
Couche-Tard intends to use available cash, existing credit facilities and a new term loan to fund the acquisition. CEO Brian Hannasch described the acquisition as “a strong geographic addition to our existing European network, enabling us to grow together in some of Europe’s strongest economies.” Couche-Tard expects the transaction to close before the end of the year, but said “there is no certainty that the offer will be accepted and the transaction will be completed”.