Phillips 66 has agreed to divest a majority stake in its German and Austrian fuel retail operations in a $2.8bn transaction, a strategic move that comes amid intensifying pressure from activist hedge fund Elliott Investment Management, according to a report by Reuters.
The deal – struck with a private equity-led consortium featuring Energy Equation Partners and Stonepeak – will see the US refiner sell 65% of the retail unit while retaining a 35% non-operating stake through a joint venture structure. The transaction includes 970 fuel stations, 843 of which operate under the JET brand, and is expected to close in H2 2025.
Hedge fund Elliott, which holds a $2.5bn stake in Phillips 66, has been actively pressuring the Houston-based firm to shed non-core assets, including a potential spin-off of its midstream business. This latest divestiture reflects management’s responsiveness to the hedge fund’s campaign for improved operational focus and capital discipline.
Proxy advisory firms ISS and Glass Lewis recently backed Elliott’s board nominees ahead of Phillips 66’s 21 May AGM, indicating growing institutional support for the activist’s agenda.
The company expects to receive approximately $1.6bn in pre-tax cash from the transaction, earmarked for debt reduction and shareholder returns – two priorities that align closely with Elliott’s calls for the business to streamline operations and increase shareholder value.
