Shell concludes sale of 185 service stations across the UK to independent dealers
Apr 12, 2015
Shell UK is pleased to announce it has accepted offers for the sale of 185 company-owned service stations to selected independent dealers and has exchanged contracts for 158 of these service stations. Through this transaction, Shell welcomes Motor Fuel Group (MFG) as a Shell dealer and strengthens its relationship with Euro Garages. It is anticipated that contracts for the remaining service stations will be exchanged in the coming weeks.
David Moss, Shell’s Retail General Manager, North Europe, said: “I’m pleased these dealers have chosen to grow their businesses with Shell and are as committed as we are to delivering high-quality products and customer service. Our retail business is going from strength to strength, with record sales of our premium fuel, Shell V-Power Nitro+, the growth of our popular Deli2Go food and beverage range and our new relationship with PayPal, which will offer mobile payment to more than four million customers a week.”
The 185 service stations are spread across Great Britain and will retain the Shell brand. Dealers will continue to sell Shell’s high-quality fuels for at least the first five years following the sale.
Of the 158 company owned sites announced today, 90 have been purchased by Motor Fuel Group and 68 by Euro Garages. Handover of these service stations to the new owners will be completed by the end of 2015.
Moss added, “Our priority is to ensure that a consistently excellent customer offer is available across our network, whether the service station is owned by Shell or by an independent dealer. That’s why we selected these independent dealers to work with, as they will invest in the sites and aim to deliver the same high standards of safety and customer care that are synonymous with the Shell brand.”
The sale of 185 Shell service stations marks the end of a commercial process, which began in September 2014, following the strategic decision to reduce the number of Shell company-owned service stations to around 550 and expand the dealer network.
Notes to editors
MFG’s managing director, Jeremy Clarke said: “We are delighted to be bringing another major brand to the MFG network. This acquisition gives us 90 high volume, quality stations that reinforce our commitment to become one of the most dynamic and profitable independent forecourt operators in the UK.
“We are looking forward to working with Shell to maximise the potential of these sites to the benefit of our customers.”
Zuber Issa, Chief Executive, Euro Garages, said: "We look forward to working closely and extending our relationship with Shell. The site portfolio secured extends our UK presence and consolidates our existing forecourt estate. As a result, more customers will be able to enjoy our branded retail convenience offer, whilst still being able to access quality Shell fuels and lubricants."
For more information please contact Shell International Media Relations on +44 (0) 20 7934 5550.
Shell Media Relations
International: +44 20 7934 5550
Americas: +1 713 241 4544
Shell Investor Relations
International: + 31 70 377 4540
North America: +1 832 337 2034
About Shell Retail
For more than 100 years, Shell has focused on making our customers’ experiences as convenient as possible. From establishing our first fuel station to launching our first convenience retail offer, this focus has seen our network grow to become one of the world’s largest single-branded retail businesses. With more than 45,000 sites operating across 70 countries, 500,000 front-line people serve more than 25 million customers around the world every day. As well as selling more than 160 billion litres of fuel, Shell sites also sell more than 100 million cups of coffee, 250 million soft drinks and 450 million confectionary items annually. We are able to do this with the help of our valued retailers who supplement and improve our offer.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control. Companies over which Shell has joint control are generally referred to as “joint ventures” and companies over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell and the Shell Group to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions.
These forward looking statements are identified by their use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "seek", "should", "target", "will" and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.
Readers should not place undue reliance on forward looking statements. Additional factors that may affect future results are contained in Shell's 20-F for the year ended 31 December 2014 (available at www.shell.com/investor and www.sec.gov). These factors also should be considered by the reader. Each forward looking statement speaks only as of the date of this announcement, 13 April 2015. Neither Shell nor any of its subsidiaries nor the Shell Group undertake any obligation to publicly update or revise any forward looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this announcement.