Phillips 66, a US refiner, has announced plans to sell its JET brand gas stations across 1,270 sites in Austria, Germany and the UK as part of a broader plan to divest non-core assets. This decision follows a call from hedge fund Elliott Investment Management for the company to refocus on its refining business and reduce operating costs. In response to this demand, Phillips 66 has decided to sell off its stake in Chevron Phillips Chemicals (CPChem) if sufficient progress towards cost-cutting goals is not made.
The sale of the JET brand gas stations is just one example of how companies in the industry are divesting non-core assets as they look to adapt to changing consumer preferences and market conditions. TotalEnergies recently completed the sale of its petrol stations in Germany and the Netherlands while Shell has announced plans to divest approximately 1,000 petrol stations in order to focus on establishing electric vehicle charging stations.
The sale is expected to generate €3 billion (about $3.2 billion) and is part of a multiyear cost-cutting project at Phillips 66. The company currently operates over 800 gas stations in Germany and 154 sites in Austria through the JET brand. The decision comes after Elliott Investment Management purchased a $1 billion stake in Phillips 66, calling for the company to refocus on its refining business and reduce operating costs. In response, Elliott threatened management changes and a sale of the company’s stake in CPChem if progress towards cost-cutting goals was not made.
Overall, this shift towards divesting non-core assets reflects a broader trend in the industry as companies seek ways to streamline their operations and adapt to changing market conditions.
