French petroleum company TotalEnergies and Canadian convenience store operator Alimentation Couche-Tard have signed agreements covering TotalEnergies’ retail networks in four European countries.
Under the terms of the agreements, TotalEnergies will team up with Couche-Tard to jointly operate its service stations in Belgium and Luxembourg.
The two companies will form a joint venture, in which TotalEnergies will own a 40% stake and Couche-Tard a 60% stake to jointly operate 619 service stations.
In addition to the partnership, TotalEnergies will sell its entire network of service stations in Germany and the Netherlands to Couche-Tard.
The network includes 1,198 service stations in Germany and 392 in the Netherlands.
TotalEnergies said that the service stations in the four countries will retain its brand name, as long as the company supplies fuel from its refineries in Belgium and Germany.
The transaction, subject to a consultation process involving employee representative bodies and the approval of relevant authorities, is expected to be closed by the end of this year.
TotalEnergies chairman and CEO Patrick Pouyanné said: “Service stations must expand from just selling fuel to become full-fledged service hubs. For this reason, TotalEnergies has decided to partner with Couche-Tard and tap into its recognized expertise in operating convenience stores in service stations.
“We are delighted that Couche-Tard will apply all of its know-how in these 2,200 service stations in Western Europe and join forces with us in Belgium and Luxembourg, where we are the market leader.”
TotalEnergies said that the transaction, based on an enterprise value of €3.1bn, involves only its service stations network and the B2B fuel card activities.
It will retain its off-station electric vehicle charging, hydrogen retail and wholesale fuel business, along with AS 24 service station network activities.
In addition, the company will focus on developing new mobilities, such as electric and hydrogen in these countries.
TotalEnergies said that the transaction is in line with its strategy to become a multi-energy company and its goal to achieve net-zero by 2050.
Established in 1980, Couche-Tard operates more than 14,000 24/7 convenience stores in North America, Asia, and Northern Europe, with over 120,000 employees.
Alimentation Couche-Tard president and chief executive officer Brian Hannasch said: “We are excited to welcome the TotalEnergies employees and stores into the Couche-Tard family.
“We have deep respect for its operations, management, and people as well as great confidence that by joining forces together, we will build a winning global retail operation in the region.
“We see this as a strong geographical fit with our existing European network, which will allow us to grow together in some of Europe’s strongest economies and move forward in our vision to become the world’s preferred destination for convenience and mobility.”
