As part of a “broader plan to divest non-core assets,” U.S. refiner Phillips 66 has launched a process that could lead to the potential sale of its JET brand gas stations across 1,270 sites in Austria, Germany, and the U.K., reported Argus Media.

JET operated 813 gas stations in Germany as of June 2023, according to the country's federal association of independent petrol stations, and 154 sites in Austria according to the company website.

The sale is expected to generate €3 billion (about $3.2 billion) and is part of a previously planned multiyear cost-cutting project.

Late last year, hedge fund Elliott Investment Management purchased a $1 billion stake in the company, calling on it to refocus on its refining business and reduce operating costs.

“In Elliott's December activist letter to the refiner, the hedge fund said if Phillips 66 failed to make sufficient progress towards its cost-cutting goals, it would push for management changes and a sale of the company's stake in Chevron Phillips Chemicals (CPChem)—valued at about $15 billion-20 billion after taxes by the investor—and its European convenience stores and other non-operated midstream assets.”

According to Petrol Plaza, “This move follows similar adjustments in the industry. Recently, TotalEnergies completed the sale of its petrol stations in Germany and the Netherlands. In addition, Shell has declared its intention to divest approximately 1,000 of its petrol stations to pivot towards establishing electric vehicle charging stations.”