TotalEnergies, the French mineral oil group, is set to divest its entire service station network in Germany and the Netherlands to Canadian company Couche-Tard. The move comes as TotalEnergies reportedly prepares for the phase-out of internal combustion engines in Europe and seeks to focus on hydrogen and charging stations in countries where it is not the market leader. With this strategic shift, TotalEnergies is taking a bold step towards a greener future while reshaping its business portfolio.
The service station network that TotalEnergies plans to sell in Germany comprises 1,198 filling stations, while in the Netherlands, it includes 392 sites, according to a company statement. TotalEnergies noted that it did not hold a market-leading position in either country. They emphasized the importance of a convenience store specialist to manage the operations of its service station network. The French company is now looking to focus on developing new forms of mobility, specifically electricity and hydrogen, in both markets, the statement added.
TotalEnergies and Couche-Tard join forces for service stations in Belgium and Luxembourg
TotalEnergies and Couche-Tard have expressed their intention to create a joint venture for the service stations in Belgium and Luxembourg, comprising 619 filling stations. Under the proposed agreement, Couche-Tard would hold a 60% majority stake in the joint venture, giving it the final say in decision-making. Despite this, the TotalEnergies brand name will remain on the service stations in all four countries for the foreseeable future. The French energy company will continue to supply fuels to the service station networks in these countries for at least the next five years. They will also continue to operate under the TotalEnergies brand during this period.
The proposed sale of TotalEnergies’ service station network to Couche-Tard, valued at €3.1 billion based on a 15-year net cash flow after taxes, also includes the fuel card business for business customers. However, TotalEnergies will retain ownership of its charging hubs outside of the service stations, as well as its hydrogen distribution, wholesale fuels, and the AS24 service station network for trucks. These assets are key to the company’s strategy of shifting towards new forms of mobility in the long term.
Adapting to the phasing out of internal combustion engines: TotalEnergies’ reevaluation of fueling station networks
The decision to sell its service station networks in Germany and the Netherlands, as well as to form a joint venture with Couche-Tard for its service stations in Belgium and Luxembourg, is a reflection of TotalEnergies’ broader strategy to adapt to the changing landscape of the European automotive industry. The planned phasing out of internal combustion engines in the EU from 2035 has prompted the company to re-evaluate its fueling station networks, which have been experiencing revenue losses due to declining fuel sales. This trend is partly because electric car owners are more likely to charge their vehicles at home or work rather than at charging stations located at service stations. TotalEnergies has divested its gas station networks in Italy, Switzerland, and the United Kingdom since 2015 as part of its long-term strategy.
TotalEnergies’ strategy for the future involves an accelerated expansion of its charging station network in major cities and on major highways across Europe. Although specific expansion targets have not been announced, the company intends to have 150,000 charging points by 2025. In Germany, the French energy company established its charging infrastructure subsidiary in October 2022 to help facilitate this expansion. TotalEnergies is also investing in developing a European hydrogen network for trucks in partnership with Air Liquide.
