Phillips 66 Partially Exits European Retail Market With $2.8 Billion Deal:

Phillips 66 PSX subsidiary reached a definitive deal to sell a 65% stake in its retail marketing business in Germany and Austria to a consortium owned by subsidiaries of investment firms Energy Equation Partners and Stonepeak at an enterprise value of around €2.5 billion (about $2.8 billion).

The transaction implies an Enterprise Value/EBITDA multiple of 9.1x based on expected 2025 EBITDA.

Phillips 66 expects to receive pre-tax cash proceeds of approximately €1.5 billion (about $1.6 billion), after customary purchase price adjustments.

Also Read: Elliott Management Scores Key Win In Phillips 66 Proxy Fight As ISS Backs All Four Board Nominees Ahead Of May 21 Vote

The proceeds are expected to support the company’s strategic priorities, including debt reduction and shareholder returns.

Through a newly established joint venture, Phillips 66 will retain a 35% non-operating interest in this business.

The retail business in Germany and Austria comprises 970 locations, with 843 operating under the JET brand.

In conjunction with this transaction, Phillips 66 will enter into a long-term supply agreement to continue providing products to the Germany and Austria retail business from the Mineraloelraffinerie Oberrhein GmbH & Co. KG (MiRO) Refinery.

Pending regulatory approvals and other closing conditions, the transaction is anticipated to be finalized in the second half of 2025.

In April, Phillips 66 reported first-quarter FY25 results, with revenue of $31.73 billion, beating the consensus of $31.33 billion and adjusted EPS of 90 cents which missed the consensus of $(0.72).

Investors can gain exposure to the stock via iShares U.S. Oil & Gas Exploration & Production ETF IEO and VanEck Oil Refiners ETF CRAK.

Price Action: PSX shares are down 1.09% at $123.33 at the last check on Thursday. 

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