Erg has 51% stake in TotalErg joint venture while Total owns the remaining 49% interest.
As per the deal, API will acquire 2,600 retail service stations, a logistics hub in Rome and 25.16% stake in the Trecate refinery located in northern Italy.
Total said that the deal is third in its plan to divest the Italian retail fuel assets and brings the the joint venture’s total asset sale proceeds to around €750m.
Total marketing and services president Momar Nguer said: “The successful monetization of these mature activities in a challenging market is another example of our active portfolio management strategy in Marketing & Services.
“It also helps reduce our refining capacity in Europe while taking advantage of a favorable market.”
Meanwhile, Total said it also agreed to acquire Erg’s 51% stake in their shared lubricants business, thus terminating the joint venture.
ERG CEO Luca Bettonte said: "We are extremely satisfied with the outcome of this important transaction, which marks the ERG Group's definitive exit from the OIL industry.
“The transaction, which has reached conclusion after more than a year of intense and complex work, allows us to maximize the value of our equity investment as part of the process to consolidate the Downstream sector in Italy.”
ERG said that the divestment allows it to further strengthen financial capacity and focus on continuing growth path in renewable sector.
The transaction is expected to be completed by 31 January 2018. It is subject to approval by the antitrust authorities and completion of the spin-off of the TotalErg business unit operating in the lubricant sector in favour of Total Italia.
