Dive Brief:
- Phillips 66 has agreed to sell its majority interest in 970 convenience retail sites across Germany and Austria for about $1.6 billion, the American energy company announced on Thursday.
- The buyer is a group owned by subsidiaries of investment firms Energy Equation Partners and Stonepeak, according to the announcement. If the deal closes, Phillips 66 will retain a non-operated 35% interest in the business through a newly formed joint venture.
- This comes less than a week before Phillips 66’s annual meeting, during which shareholders will vote on whether to overhaul the company’s board of directors after some have pushed for major change.
Dive Insight:
Ever since acquiring a stake in Phillips 66 in 2023, activist investor Elliott Management has led the charge to transform the energy company, including pushing to spin off certain assets and refresh its board. Around this time last year, Phillips 66 placed these 970 retail sites on the market, which CFO Kevin Mitchell said at the time was because they don’t “integrate with the core strategic focus areas that we have as a company.”
After months of public battles between Phillips 66 and Elliott, the Houston-based energy company believes its proposed divestiture in Europe “enhances long-term shareholder value” ahead of the May 21 annual meeting, Chairman and CEO Mark Lashier said.
“The newly formed joint venture allows us to monetize this non-core asset while retaining the ability to benefit from its future growth,” he added.
About 840 of the sites operate under Phillips 66’s Jet banner. The deal is expected to close in the second half of 2025. Proceeds will be used to support Phillips 66’s strategic priorities, including debt reduction and shareholder returns, according to the announcement.
Phillips 66’s latest deal mirrors Parkland Corp.’s agreement earlier this month to sell its fuel assets and thousands of c-stores in North America to Sunoco LP for over $9 billion. That agreement also came right before Parkland’s annual shareholder meeting, during which Parkland was expected to battle for its future after years spent grappling with upset shareholders. That meeting was cancelled and replaced with a June 24 vote.
Elliott Management recently also spearheaded a push for a strategy shift at BP that included the departure of the oil giant’s head of strategy and sustainability.
