### **Phillips 66: Strategic Move to Divest Majority Interest in Germany and Austria Marketing Business**
In a bold step aimed at optimizing its portfolio, **Phillips 66** has officially announced a substantial divestiture involving its **Germany and Austria retail marketing business**. The recent agreement, made by its subsidiary, **Phillips 66 Continental Holding GmbH**, involves selling a **65% interest** in this lucrative sector to a consortium backed by investment firms **Energy Equation Partners** and **Stonepeak**. Phillips 66 will maintain a **non-operated 35% interest** through a newly established joint venture.
### **Key Deal Highlights**
– **Enterprise Value**: The retail marketing business in Germany and Austria has been valued at a staggering **€2.5 billion** (approximately **$2.8 billion**). This figure translates to an implied **Enterprise Value/EBITDA multiple of 9.1x**, based on anticipated **2025 EBITDA**.
– **Cash Proceeds**: Phillips 66 is poised to receive pre-tax cash proceeds of around **€1.5 billion** (approximately **$1.6 billion**) after standard purchase price adjustments. These funds will play a critical role in enhancing the company’s **strategic priorities**, particularly in terms of **debt reduction** and increased **shareholder returns**.
### **Continued Supply Agreement**
To ensure a seamless transition and ongoing operations, Phillips 66 has also entered a **multi-year agreement** to continue supplying the newly formed business with products from the **Mineraloelraffinerie Oberrhein GmbH & Co. KG (MiRO) Refinery**. This strategic supply arrangement highlights Phillips 66’s commitment to maintaining strong operational ties despite the ownership shift.
### **Business Impact and Scope**
The German and Austrian retail business comprises **970 sites**, predominantly featuring **843 JET-branded** locations. The transaction is expected to close in the **second half of 2025**, pending necessary regulatory approvals and customary conditions.
### **Perspectives from Leadership**
**Mark Lashier**, chairman and CEO of Phillips 66, shared insights on the strategic importance of this transaction:
> “**This transaction advances our strategy to optimize our portfolio and enhances long-term shareholder value. The newly formed joint venture allows us to monetize this non-core asset while retaining the ability to benefit from its future growth.**”
### **Looking Ahead**
As Phillips 66 embarks on this new chapter, the divestiture not only reflects an agile approach to asset management but also signals robust fundamentals in its operational framework. This move is expected to bolster Phillips 66’s footprint in priority markets, while expertly navigating the complexities of the energy sector.
With ongoing commitments to shareholder value and strategic growth, Phillips 66 continues to maintain its position as a formidable player in the global energy market.
For further insights on energy sector trends, visit [Energy Information Administration](https://www.eia.gov) for detailed reports and analyses.
