Canadian convenience store operator Alimentation Couche-Tard Inc. agreed to buy nearly 2,200 gas stations in Europe from TotalEnergies SE for 3.1 billion euros ($3.3 billion).
Couche-Tard said on Thursday it had made a firm offer for all of the French oil company’s retail assets in Germany and the Netherlands, as well as a 60% stake in businesses in Belgium and Luxembourg.
The Canadian company, whose brands include Circle K, has been looking for acquisitions since its bid to buy French retailer Carrefour SA failed two years ago amid government opposition.
The deal comes as gas stations prepare to transition from selling gas to becoming food and service stops. The European Union aims to ban the sale of vehicles with internal combustion engines by 2035 as part of an effort to become carbon neutral by mid-century.
“The transformation of mobility is changing the way customers use gas stations,” Patrick Pouyanne, CEO of TotalEnergies, said in the statement. “This profound trend means that new services and new activities need to be developed, especially in stores.”
The change has stimulated deals in the sector. Wm Morrison Supermarkets Plc took control of insolvent U.K. convenience store chain McColl’s Retail Group Plc last year after a bidding war with gas station owner EG Group that is controlled by Issa brothers The billionaire entrepreneurs have made a string of retail acquisitions including UK supermarket operator Asda.
Asda has also agreed to pay 600 million pounds ($724 million) to buy gas stations from Co-operative Group Ltd., a deal that has raised concerns from Britain’s antitrust watchdog.
Charging points
The transaction announced on Thursday will help TotalEnergies achieve its goal of reducing its sales of petroleum products by 30% by 2030 as part of the group’s plan to reduce carbon emissions. The company has sold its service station networks in Italy, Switzerland and the UK since 2015.
At the same time, TotalEnergies plans to deploy charging points on the main roads and in the big cities of Europe. Electric vehicles will be charged more often at home and at work than at gas stations, he says. It is also developing a European network of hydrogen stations for trucks in partnership with Air Liquide.
Shares in TotalEnergies rose as much as 2.6% in Paris trading.
Couche-Tard will finance the acquisition with cash, existing credit facilities, a commercial paper program and a new term loan.
The assets had earnings of about 455 million euros last year, the company said. Couche-Tard plans to close the purchase before the end of 2023, although it is subject to a consultation process with employee representatives.
The service stations will retain the TotalEnergies brand for as long as the company supplies the fuel, at least five years. The French company will maintain its activities related to off-station charging of electric vehicles, retail and wholesale hydrogen fuel, as well as the network of AS 24 service stations for trucks.
