Shell announces sale of 185 service stations in the UK

Shell UK has announced that it has accepted offers for the sale of 185 of its retail stations across Great Britain. Handover of the service stations is expected to take place by the end of 2015. The stations will continue to sell Shell products for at least five years after the sale.

“Our priority is to ensure that a consistently excellent customer offer is available across our network,” said David Moss, Shell’s retail general manager, “whether the service station is owned by Shell or by an independent dealer.”

Shell has exchanged contracts for 158 of these stations, 90 with Motor Fuel Group (MFG) and 68 with Euro Garages.

MFG is one of the UK’s leading independent forecourt operators, with a combined company station network of 284 stations. It is the second largest independent reailer in the UK. MFG company stations operate under the BP, JET and Texaco fuel brands, all with an expanding forecourt shop under the Costcutter brand. It also launched Murco as an exclusive dealer brand on 1 April 2015.

”This acquisition gives us 90 high volume, quality stations that reinforce our commitment to become one of the most dynamic and profitable independent forecourt operators in the UK,” said Jeremy Clarke, MFG managing director.

Euro Garages is one of the UK’s largest privately owned forecourt operators, with an expanding portfolio of 180 freehold-owned sites, mostly located across the North West, North East, Yorkshire, Midlands and Wales.

Euro Garages have strategic brand partnerships with BP, ESSO, Shell, SPAR, Starbucks, Subway, Greggs and Burger King. It operates 48 Starbucks with 61 Subway stores across its network, with plans to open 100 each by the end of 2015.

Said Zuber Issa, chief executive of Euro Garages: “The site portfolio secured extends our UK presence and consolidates our existing forecourt estate. As a result, more customers will be able to enjoy our branded retail convenience offer, whilst still being able to access quality Shell fuels and lubricants.”

The sale is part of Shell’s commercial process, which it started in September 2014, to reduce the number of company-owned service stations to around 550, and expand its dealer network.

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