TotalEnergies finalizes €3.1bn service stations deal with Couche-Tard

TotalEnergies has finalized its agreements with Alimentation Couche-Tard, a milestone transaction valued at €3.1 billion. The deal, which involved TotalEnergies’ retail networks in Germany, the Netherlands, Luxembourg, and Belgium, was completed in two steps, with the final step concluded on January 3rd, 2024.

TotalEnergies received €3.4 billion in cash consideration after adjustments and before tax for the transaction.

The transaction with Couche-Tard encompasses different arrangements for each country. In Germany and the Netherlands, TotalEnergies sold its entire network to Couche-Tard. Conversely, in Belgium and Luxembourg, a joint venture was formed between the two companies, with TotalEnergies retaining a 40% stake and Couche-Tard holding 60%. This joint venture will operate 619 service stations.

TotalEnergies will continue to supply fuel to these service stations for at least five years from its refineries in Antwerp, Belgium, and Leuna, Germany. The service stations will retain the TotalEnergies brand as long as the fuel supply continues.

This transaction aligns with the European Union’s Green Deal and Fit for 55 legislative package, aiming to promote zero-carbon vehicles and reduce dependence on combustion-engine vehicles. It reflects TotalEnergies’ strategy to evolve into a multi-energy company and achieve Net Zero by 2050. The company plans to reduce its petroleum product sales by 30% by 2030.

In line with its Net Zero ambition, TotalEnergies is actively developing in new mobilities, particularly in electric and hydrogen mobility. The company is deploying charging points across Europe and developing a network of hydrogen stations for trucks in partnership with Air Liquide.

TotalEnergies’ partnership with Couche-Tard, a leader in 24/7 convenience stores, focuses on enhancing non-fuel revenues in its retail business. Service stations are evolving into service hubs, offering a variety of services including food, car washes, and shopping. Couche-Tard brings its expertise in operating convenience stores to this partnership, aiming to maximize the potential of these retail networks.

The transaction between TotalEnergies and Alimentation Couche-Tard represents a significant shift in the landscape of European retail networks. It not only demonstrates TotalEnergies’ commitment to sustainability and new energy solutions but also underscores the importance of strategic partnerships in adapting to evolving market dynamics and consumer needs.