Phillips 66 to Sell JET Gas Stations in Europe: Part of Multiyear Cost-Cutting Initiative Inspired by Hedge Fund Activism”.

Phillips 66 has announced its intention to sell its JET brand gas stations at 1,270 sites in Austria, Germany, and the U.K. The sale is expected to generate €3 billion (about $3.2 billion) and is part of a multiyear cost-cutting project that the refiner has been working on.

The decision to sell the JET gas stations follows similar moves in the industry. TotalEnergies recently completed the sale of its petrol stations in Germany and the Netherlands, while Shell has announced plans to divest approximately 1,000 of its petrol stations to focus on establishing electric vehicle charging stations.

The sale of the JET gas stations is part of a strategic shift for Phillips 66 as it seeks to optimize its portfolio and strengthen its core refining business. In late 2023, hedge fund Elliott Investment Management acquired a $1 billion stake in Phillips 66 and called for a refocus on the refining business and reduction in operating costs. In a December activist letter to the refiner, Elliott warned that if sufficient progress was not made towards cost-cutting goals, they would push for management changes and the sale of the company’s stake in Chevron Phillips Chemicals (CPChem), as well as its European convenience stores and other non-operated midstream assets.