Due to changes in its business plans, Exxon is going to sell its 41 filling stations in the Czech Republic Czech business weekly Euro reported Thursday. Apart from its retail network, Exxon also sells chemicals, lubricants and aviation fuel businesses.
Our view: Exxon’s European brand Esso launched its operations in the Czech Republic 15 years ago, however, it was seemingly unable to reach the critical mass to operate the network with satisfactory return. The news came just a day after another player on the Czech fuel market, ConocoPhillips announced to sell all 44 of its petrol stations. Although no official comments from Unipetrol yet, we expect the company to bid for one of the networks to get closer to a more effective size of the network. Since there are two mid-sized networks up for sale, price might be more favorable. This stage however, we consider the news as neutral for Unipetrol.