Why BP is exiting the Austrian mobility and convenience sector

BP, the British multinational oil and gas company, announced on Thursday that it intends to divest its mobility and convenience business in Austria. 

This strategic move is part of BP’s broader portfolio restructuring efforts under the leadership of CEO Murray Auchincloss, who has implemented a “reset strategy” for the company.

The mobility and convenience business encompasses BP’s retail fuel stations, convenience stores, and other related services in Austria. 

By selling this business, BP aims to streamline its operations, optimise its portfolio, and focus on core areas that align with its long-term strategic objectives.

Assets included in the sale

The company said in a statement on Thursday:

Potential sale includes all bp’s Austrian retail sites, EV charging assets, the associated fleet business of bp in Austria and bp’s share in the company operating the Linz terminal NOJV.

The sale encompasses a wide range of assets within BP’s Austrian mobility and convenience business. 

This includes over 260 retail sites spread throughout the country, which likely consist of BP-branded fuel stations and convenience stores. 

Additionally, the sale includes BP’s Austrian fleet business, which provides fuel and related services to commercial vehicle fleets. 

The assets also include electric vehicle charging stations, reflecting BP’s investment in the growing electric vehicle market. 

Finally, BP is selling its shares in the company that operates the Linz fuel terminal, which is a key facility for fuel storage and distribution in Austria.

Broad divestment program

“Over recent years we have grown the business to become number two major branded retailer in the market,” Emma Delaney, EVP, customers & products at BP said in a release. 

As bp now looks to focus downstream and reshape our portfolio, we believe that a new owner will be best placed to unlock the business’s full potential.

In February, the oil major had announced a significant shift in its strategy, revealing a $20 billion divestment program set to run through 2027. 

This strategic move highlights the company’s intention to reduce its involvement in the renewable energy sector while simultaneously ramping up investments in oil and gas exploration and production. 

The divestment program will likely involve the sale of assets, subsidiaries, or business units related to renewable energy, allowing the company to reallocate capital and resources towards its core oil and gas operations.

Market process to begin immediately

BP further said the marketing process for their Austrian assets will commence immediately. 

The company has set an ambitious goal of securing a sales agreement by the conclusion of the third quarter of this year. 

This strategic move aligns with BP’s broader portfolio management strategy and is expected to generate significant interest from potential buyers in the Austrian and international markets.

Delaney added:

Our focus remains on serving our customers and giving them a great experience every time they come to refuel or shop, and this will not be impacted by bp’s intention to sell the retail business.

BP had previously sold its retail businesses in Switzerland in 2022 and Turkey in 2024.

The post Why BP is exiting the Austrian mobility and convenience sector appeared first on Invezz