Shell ups US company-owned convenience retail sites with Tri Star deal
Shell PLC on Tuesday said it has agreed to increase its stake in Tri Star Energy LLC, a US convenience store operator and fuel distributor, to 100% from 33%.
The makes the London-based oil major the full owner of an additional 320 fuel and convenience retail sites in Tennessee and surrounding states, as well as supply agreements with 552 more dealer-owned locations, the firm said.
Shell acquired the extra interest from the Parman Corp, Kimbro Oil Co and their subsidiaries.
"The transaction is fully aligned with our growth strategy to focus capital on businesses in which we have distinctive advantages and can create long-term shareholder value," said Machteld de Haan, president of Downstream, Renewables and Energy Solutions.
The acquisition is projected to generate an internal rate of return above the hurdle rate set for Shell's marketing business.
Shell already has the largest branded fuel network in the US, with around 12,000 primarily wholesaler and dealer-owned fuel and convenience retail sites across 49 states serving more than 7 million customers daily. This acquisition significantly strengthens its company-owned presence in the US.
Shell said the investment is in line with its strategy to reallocate capital from lower-return areas to businesses and markets where the company has proven it can deliver strong performance and has clear competitive advantages.
The deal is expected to be completed by the end of 2026, subject to regulatory clearance.
On completion, Tri Star Energy will be operated by Texas Petroleum Group LLC, a wholly owned subsidiary of Shell Mobility & Convenience US LLC.
SMC's portfolio will consist of nearly 550 company-owned convenience retail sites and supply agreements with around 650 dealer-owned sites across the southern US.
Shell closed up 2.6% at 3,432.50 pence each in London on Tuesday.
No financial details were disclosed.
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