ExxonMobil sells 1,000 Esso-branded service stations in Germany
ExxonMobil has entered into a strategic partnership with EG Deutschland GmbH, an affiliate of UK-based EG Group Limited, to expand the Esso brand in Germany. Under the agreement, ExxonMobil is selling its approximately 1,000 Esso-branded service stations to the EG Group and converting it into the brand-new wholesaler model already in place in other European markets and in North America. The company will continue to sell ExxonMobil-supplied Synergy fuels and Mobil-branded lubricants at the Esso-branded stations.
“Our conversion to a branded wholesaler model in Germany is consistent with ExxonMobil’s approach to growing the Esso brand,” said Florian Barsch, managing director of ExxonMobil’s Central Europe Holding in Hamburg, Germany.
The German cooperation between ExxonMobil and EG is initially set for 20 years. Both companies have already successfully established similar brand partnerships in the UK and France and recently signed an agreement providing for this in Italy. EG Group has committed to investing in the fuel, carwash and shop business in Germany.
“During the consultations with a future-oriented and growth-oriented concept under the Esso brand, EG convinced us to transfer our entire network to this prospective customer,” said Alexander Hentschke, head of the Esso petrol station business in Germany.
Following the refocusing on the branded wholesaler model, ExxonMobil will continue to focus on refining the Esso brand and its fuels and marketing in the service station business.
“We are very pleased to establish a partnership with ExxonMobil in Germany and work together with Esso and the stations’ tenants and dealers in the future. The German market offers us great growth opportunities and is the logical extension of our business throughout Europe,” says Mohsin Issa, founder and co-CEO of the EG Group. “After all, we already have gas stations in France, Great Britain and Benelux. As a result, and with other acquisitions already announced, we are one of Europe’s largest gas station operators. ”
With the purchase of the German Esso filling station network as well as the current takeover of Esso stations in Italy, EG will operate around 3,500 stations throughout Europe.
The operator model change, which is still to be decided by antitrust authorities, is expected to be completed in the fourth quarter of 2018.
The purchase price for the 1,000 Esso filling station network in Germany was not disclosed by either party.