Phillips 66 has agreed to sell a 65% stake in its German and Austrian retail fuel business to a private equity-led consortium comprising Energy Equation Partners and Stonepeak, in a transaction valuing the unit at $2.8nm, according to a report by Reuters.
The deal comes as the US energy giant responds to mounting pressure from activist hedge fund investor Elliott Investment Management to streamline operations and unlock shareholder value.
The sale includes 970 fuelling stations, of which 843 operate under the JET brand, and reflects private equity’s increasing role in carve-out transactions from large corporates undergoing strategic overhauls. Phillips 66 will retain a 35% non-operating stake in the business through a newly formed joint venture and will maintain a multi-year fuel supply agreement from its MiRO refinery in Karlsruhe, securing a reliable revenue stream.
Elliott Investment Management, which holds a $2.5bn stake in Phillips 66, has been advocating for sweeping changes including the divestment of non-core assets and a potential spin-off of the company’s midstream business. The activist campaign, supported by proxy advisors ISS and Glass Lewis, is expected to culminate at Phillips 66’s annual general meeting on 21 May, where Elliott is pushing for board representation.
Phillips 66 expects to receive $1.6bn in pre-tax cash proceeds, which will be directed toward debt reduction and enhanced shareholder returns—a move designed to shore up investor confidence ahead of the AGM.
