As part of ambitions to transform them into centers for food and services, French oil company TotalEnergies is selling some of its European gas stations to Canadian convenience store operator Alimentation Couche-Tard for $3.3 billion, the firms announced on Thursday.
After its unsuccessful attempt to acquire French supermarket Carrefour in 2021 owing to objections from the French government, Couche-Tard has been looking to grow in Europe.
In addition, according to the firms, the agreement calls for the Canadian company to acquire all of TotalEnergies’ gas stations in Germany and the Netherlands as well as a 60% ownership in the French company’s stations in Belgium and Luxembourg.
Moreover, the 3.1 billion euro ($3.29 billion) purchase price will be paid in cash by the corporation.
Furthermore, in a joint statement, TotalEnergies CEO Patrick Pouyanne stressed that gas stations must go beyond simply providing fuel to become full-fledged service centres.
According to TotalEnergies, it will continue to be in charge of operations involving the AS 24 truck service station network, retail and wholesale fueling of hydrogen, and off-station electric car charging (charging hubs).
Also, according to the firm, the deal will assist TotalEnergies achieve its goal of lowering petroleum product sales by 30% by 2030 in order to prevent its fuel sales and refining throughput from exceeding its oil production.
Since 2015, TotalEnergies has sold off its network of service stations in Italy, Switzerland, and the UK.
However, Couche-Tard intends to finance the transaction using available cash as well as pre-existing credit facilities and fresh debt.
Since its founding in 1980, Couche-Tard has acquired its way from a single store in Quebec to a vast global network of convenience stores and gas stations.
On the grounds of food security, the French government rejected Couche-$20 Tard’s billion bid for Carrefour, the biggest food store in Europe, in January 2021.
