Total has agreed to offload its service station network and commercial assets in Turkey to the Demirören conglomerate for $356 million.
The French energy giant said the challenge of gaining a large enough share of the retail market to achieve its desired profit margin was the reason behind the sale.
Total’s president of marketing and services, Philippe Boisseau, said: “After operating in Turkey for several years, we conducted an in-depth review of our position and the competitive environment. We concluded that it would be difficult to attain a large enough retail market share to achieve the level of profitability expected for our operations worldwide.”
Total is the fifth-largest oil distributor in Turkey with 358 employees, it sells fuel products and LPG through a network of 440 service stations across the country.
It will maintain a petroleum product marketing presence in Turkey through its lubricant activities, including a blending plant in Menemen and odorless LPG operations. The two businesses will be transferred to a separate company prior to completion of the sale.
Total said it paid particular attention to Demirören’s ability and commitment to support the retail network and to respect the group’s human resources policies.
Until the transaction closes within the next few months, Total Oil Türkiye will continue to operate its activities.
Demirören is one of Turkey’s largest conglomerates. Its subsidiary Milangaz is the country’s No. 1 LPG supplier.