US company cashes in Coop buys Coop Pronto shares for one billion francs
Coop is buying its shares in Coop Mineraloel AG from its US partner Philipps 66, thereby taking over Coop Pronto completely.
15.10.2024, 10:42
SDA
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- Coop is buying 49 percent of the shares in Coop Mineraloel AG from Philipps 66 in the USA.
- Coop is thus taking over the subsidiary Coop Pronto completely.
- The price is CHF 1.06 billion.
- The Competition Commission still has to give its approval.
Coop is taking over all of Coop Pronto's 324 stores and petrol stations. The retail giant is buying the share in Coop Mineraloel AG that was previously owned by its US partner Phillips 66. The concept of the new 100 percent subsidiary will not change for the time being.
Coop is taking over Phillips 66's 49 percent stake in Coop Mineraloel AG, as was announced in a press release on Tuesday. The deal still requires the approval of the Swiss Federal Competition Commission (COMCO) to be finalized. Coop already owns the remaining 51 percent.
For Phillips 66, the sale is a strategic decision, as the former subsidiary of the global energy group ConocoPhillips, which is now listed independently on the US stock exchange, reported on Tuesday night. Coop is paying a total of 1.06 billion Swiss francs in cash to Phillips 66.
Phillips 66 no longer counts the operation of petrol stations and petrol station stores as part of its core business. It was already announced in the spring that the group intends to sell the approximately 1000 German and Austrian Jet petrol stations. Some of the proceeds from the sales are to go to the shareholders.
Strengthening the convenience business
Coop, on the other hand, wants to strengthen its market position in the convenience business with the full takeover of Coop Pronto. The transaction would "secure ideal locations for the future in the growing convenience market", according to an inquiry from the news agency AWP. Coop left open whether further locations will be added.
Coop Pronto operates stores at selected locations throughout Switzerland and in Liechtenstein with a smaller range of products than is the case in Coop stores. These include stores at petrol stations, train stations or in city centers. Today, 259 of the total 324 Coop Pronto stores are located at petrol stations.
The first petrol station store was opened by the then wholly-owned subsidiary OK Coop in 1987. From 1995, the Coop Pronto store concept was gradually introduced at 46 locations. The company has been called Coop Mineraloel AG since 2000. It opened its 100th location in 2003, its 200th in 2008 and its 300th store in 2018. Coop Mineraloel AG most recently achieved annual sales of CHF 2.7 billion.
Franchise concept remains
Coop Pronto will continue to be operated according to the existing franchise system concept, the statement continued. Coop's franchise partners will manage the stores according to Coop's specifications and will do so under their own responsibility. Coop has also promised that the longer opening hours will be retained.
A total of around 5800 people are currently employed at the Coop Pronto locations. They are employed directly by the franchise partners and will keep their jobs, according to Coop.
However, there will be changes to the purchasing of mineral oil products. To ensure security of supply, fuel will in future be procured from various suppliers, including Phillips 66, Coop announced.
