MOSCOW (MRC) -- 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 (USD3.3 billion) deal with Canadian convenience-store operator Couche-Tard, the companies said.
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.
We remind, TotalEnergies and Paprec, leader in plastic recycling in France, have signed a long-term commercial agreement to develop a French value chain for advanced recycling of plastic film wastes. The agreement will secure the supply of TotalEnergies' future advanced plastic recycling plant in Grandpuits. Following the terms of this agreement, Citeo, the main organization in charge of end-of-life household packaging in France, will provide a stream of flexible plastic waste sorted from post-consumer packaging.