logo
Phillips 66 sells Euro businesses valued at $2.8 billion ahead of Elliott proxy fight vote

Phillips 66 sells Euro businesses valued at $2.8 billion ahead of Elliott proxy fight vote

Yahoo16-05-2025
Phillips 66 said May 15 it will sell majority stakes in its Germany and Austria retail fueling business ahead of its heated proxy fight next week with Elliott Investment Management.
Elliott is seeking to break Phillips 66 up after potentially gaining four board seats following May 21 votes, attempting to sell or spin off the oil refiner's pipeline, terminals, and petrochemicals businesses. Phillips 66 already had expressed a willingness to divest its European retail businesses last year, including its prior sale last fall of its Switzerland and Liechtenstein business.
Phillips 66 is selling 65% stakes in the Germany and Austria businesses to a consortium led by Energy Equation Partners and Stonepeak that will bring in $1.6 billion in pre-tax cash proceeds, giving the businesses a total enterprise value of $2.8 billion. The deal includes 970 retail fueling sites, of which 843 are JET-branded stores.
Phillips 66 said the proceeds will go toward debt reduction and shareholder returns.
'This transaction advances our strategy to optimize our portfolio and enhances long-term shareholder value,' said Mark Lashier, Phillips 66 chairman and CEO, in a statement. 'The newly formed joint venture allows us to monetize this non-core asset while retaining the ability to benefit from its future growth.'
The ongoing proxy fight that comes to a head next week pits one of the energy sector's most storied players, against arguably the most influential activist fund manager in the world, led by billionaire Paul Singer.
Elliott owns a nearly 6% stake in Phillips 66 and is pushing for major change, arguing that Phillips 66 has performed below peers such as Marathon Petroleum and Valero Energy, and that Phillips 66 needs to focus on its core oil refining business instead of continuing to grow its midstream pipeline and terminals businesses. Likewise, Chevron has expressed an interest in buying out Phillips 66's stake in its Chevron Phillips Chemical joint venture.
That runs counter to Phillips 66's strategy of late to grow its midstream pipeline business, especially in natural gas liquids (NGLs), such as propane, butane, and ethane—the primary petrochemical feedstock, which Phillips 66 sees as its largest growth potential.
Elliott notched wins earlier this week when prominent proxy advisory firms Institutional Shareholder Services (ISS), Glass Lewis, and Egan-Jones all sided with Elliott's proposed board changes in the proxy fight, arguing that Phillips 66 has regularly fallen short of market expectations in recent years.
Elliott said in a prepared statement that 'ISS cited Phillips 66's disappointing operating performance, poor corporate governance, and 'track record of providing selective and ambiguous disclosure' as reasons to support Elliott's 'strong slate.' With all three proxy advisory firms having endorsed Elliott's case, it is clearer than ever that urgent and meaningful change is needed in the Phillips 66 boardroom.'
Elliott also is pushing for a non-executive chair to lead the board.
Phillips 66 countered that it disagrees with the proxy advisory firms' decisions, contending that they failed to properly examine Elliott's thesis for breaking up the company, and that they relied on outdated information and analyses.
Lashier said Phillips 66 is in the early days of its transformation strategy and that it is producing stronger results of late.
'Elliott is seeking rapid, irreversible change in pursuit of a short-term thesis that would introduce significant risks to Phillips 66 shareholders,' Phillips 66 said in a statement. 'Do not let Elliott's short-term and misinformed thesis disrupt your consistent and compelling returns.'
This story was originally featured on Fortune.com
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Is Giorgia Meloni the ‘Iron Lady' for the Trump era?
Is Giorgia Meloni the ‘Iron Lady' for the Trump era?

The Hill

time12 minutes ago

  • The Hill

Is Giorgia Meloni the ‘Iron Lady' for the Trump era?

In the twilight of the Cold War, the West's resurgence was defined by the extraordinary partnership between President Ronald Reagan, Prime Minister Margaret Thatcher and Pope John Paul II. Their alliance — grounded in a shared vision of political freedom, faith and economic liberty — reshaped the world. Today, as President Trump works to remake America's place in the world and Pope Leo launches his papacy with strong calls for human dignity in the AI era, one wonders who in Europe can rise to the moment as Thatcher once did. The answer, increasingly, seems to be Italian Prime Minister Giorgia Meloni. The 2020s are witnessing the rise of a new transatlantic alliance in which Meloni is poised to play the pivotal European role. As the continent's political center struggles with fragmentation and fatigue, Meloni has emerged not just as a survivor, but as the most powerful person in Europe, a bridge between Washington and Brussels and the architect of a new conservative order. Why does Meloni matter now? Recall what made the Thatcher-Reagan partnership so exceptional. Thatcher was not Reagan's sidekick but his intellectual peer and sometimes his challenger. Both leaders were outsiders who stormed the establishment, preaching the virtues of free enterprise and national renewal. Their rapport was legendary, rooted in mutual respect, frequent communication and a willingness to push each other toward bolder action. Thatcher's influence was felt not only in her steadfast support for Reagan's confrontation with the Soviet Union but also in her ability to shape his thinking. Their partnership was not frictionless; disagreements over the Falklands, Grenada and economic policy occasionally flared, but their unity was a force multiplier for the Western world. Fast forward to 2025, and Europe is searching for a new Thatcher — a leader with the vision, resolve and political skill to partner with an assertive America. Enter Meloni, Italy's first female prime minister. Meloni's rise is Thatcherite in its improbability. Once dismissed as a neo-fascist firebrand, she has transformed her Brothers of Italy party from the fringes to the mainstream, presiding over a stable government in a country known for its political chaos. Her coalition dominates Italian politics, and her approval ratings have remained robust even as she pursues controversial reforms. What sets Meloni apart, however, is her growing stature on the world stage. She has become the European leader most closely aligned with Trump, earning his praise and trust. She was the only EU head of government invited to Trump's 2025 inauguration — a symbolic nod to her emerging role as the continent's conservative standard-bearer. The parallels with the Reagan-Thatcher era are striking. Like Thatcher, Meloni is a conviction politician with a talent for coalition-building and a knack for bending events to her will. She has used her position to shift the European debate on migration, security and sovereignty — championing policies that have been adopted, in some form, by Brussels and emulated by other European leaders. Meloni's diplomatic skills have also been on display in her dealings with Washington and Brussels. She has managed to maintain Italy's support for Ukraine and NATO while also cultivating ties with Trump's inner circle and other right-wing populists. Her ability to bridge the gap between an increasingly nationalist America and a fragmented Europe is reminiscent of Thatcher's role as the indispensable transatlantic interlocutor. Of course, the analogy is not perfect. Meloni's Italy is not the U.K. of the 1980s, and today's geopolitical landscape is more multipolar. Thatcher's Britain was a nuclear power and America's closest ally. Meloni's Italy, while influential, does not command the same global clout. Europe today is more fractured, and the threats it faces — migration, energy insecurity, technological disruption — are different from the existential menace of Soviet communism. Yet Meloni's impact is undeniable. She has demonstrated that European leaders can still shape the global agenda, provided they combine ideological clarity with political pragmatism. Like Thatcher, Meloni is willing to challenge orthodoxy and take risks, even at the cost of controversy. As Trump seeks to recast America's role in the world, he needs a European partner who is more than a cheerleader — someone who can match him in vision and tenacity. Meloni, with her blend of conviction, charisma and strategic sense, is uniquely positioned to play that part. The Reagan-Thatcher-John Paul II alliance changed the course of history. Whether Meloni and Trump can forge a partnership of similar consequence remains to be seen. But as Europe's new power broker, Meloni has already shown she is ready to step onto the world stage — and perhaps, like Thatcher before her, help shape the destiny of the West.

Europe and China agree to take action on climate change and nothing else in tense Beijing summit
Europe and China agree to take action on climate change and nothing else in tense Beijing summit

Los Angeles Times

time12 minutes ago

  • Los Angeles Times

Europe and China agree to take action on climate change and nothing else in tense Beijing summit

BEIJING — China and the European Union have issued a joint call to action on climate change during an otherwise tense bilateral summit in Beijing on Thursday riven with major disagreements over trade and the war in Ukraine. The two economic juggernauts issued a joint statement on climate change, urging more emission cuts and greater use of green technology and affirming their support for the Paris Climate Agreement as well as calling for strong action at the upcoming COP30 climate summit in Brazil. 'In the fluid and turbulent international situation today, it is crucial that all countries, notably the major economies, maintain policy continuity and stability and step up efforts to address climate change,' the joint statement said. Their climate agreement was a silver lining on a stormy day where European leaders demanded a more balanced relationship with China in talks with President Xi Jinping. They highlighted trade in their opening remarks, calling for concrete progress to address Europe's yawning trade deficit with China. 'As our cooperation has deepened, so have the imbalances,' European Commission President Ursula von der Leyen said. 'We have reached an inflection point. Rebalancing our bilateral relation is essential. Because to be sustainable, relations need to be mutually beneficial.' Expectations were low ahead of the talks, initially supposed to last two days but scaled back to one. They come amid financial uncertainty around the world, wars in the Middle East and Ukraine, and the threat of U.S. tariffs. Neither the EU nor China is likely to budge on key issues. European Council President António Costa called on China to use its influence over Russia to bring an end to the war in Ukraine — a long-running plea from European leaders that is likely to fall again on deaf ears. Xi called for deeper cooperation between China and Europe to provide stability in an increasingly complex world. Both sides should set aside differences and seek common ground, he said, a phrase he often uses in relationships like the one with the EU. China is willing to strengthen coordination on climate and make greater contributions to addressing climate change, he said, but he pushed back against EU restrictions on Chinese exports. 'We hope the EU will keep its trade and investment markets open, refrain from using restrictive economic and trade tools and provide a good business environment for Chinese companies to invest and develop in Europe,' he said, according to a readout posted online by state broadcaster CCTV. Besides trade and the Ukraine war, von der Leyen and Costa were expected to raise concerns about Chinese cyberattacks and espionage, its restrictions on the export of rare earth minerals and its human rights record in Tibet, Hong Kong and Xinjiang. The EU, meanwhile, has concerns about a looming trade battle with the United States. 'Europe is being very careful not to antagonize President Trump even further by looking maybe too close to China, so all of that doesn't make this summit easier,' said Fabian Zuleeg, chief economist of the European Policy Center. 'It will be very hard to achieve something concrete.' China's stance has hardened on the EU, despite a few olive branches, like the suspension of sanctions on European lawmakers who criticized Beijing's human rights record in Xinjiang province, where it is accused of a widespread campaign of repression against the Uyghurs. The summit ended with almost no movement on the major issues of trade, electric vehicles, or Russia, said Noah Barkin, an analyst at the Rhodium Group think tank. Rather, frustration from the EU was glaringly obvious 'after years in which its concerns have been largely ignored by Beijing.' He said the Europeans will likely use more 'trade defense tools in the months ahead, including a debate over expanding safeguards and new cases under the bloc's foreign subsidies regulation.' Like the U.S., the 27-nation EU bloc runs a massive trade deficit with China — around 300 billion euros ($350 billion) last year. It relies heavily on China for critical minerals and the magnets made from them for cars and appliances. When China curtailed the export of those products in response to Trump's tariffs, European automakers cried foul. China agreed during the summit to to start 'an upgraded export supply mechanism' to fast-track exports of critical minerals, von der Leyen said. Details of the arrangement were not immediately made public. Barkin said he doubted the mechanism would be 'a miracle solution for what may become a go-to coercion tool for Beijing in the years ahead.' The EU has imposed tariffs on Chinese electric vehicles to support its carmakers by balancing out Beijing's heavy auto subsidies. China would like those tariffs revoked. The rapid growth in China's market share in Europe has sparked concern that Chinese cars will eventually threaten the EU's ability to produce its own green technology to combat climate change. Business groups and unions also fear that the jobs of 2.5 million auto industry workers could be put in jeopardy, as well those of 10.3 million more people whose employment depends indirectly on EV production. China has launched investigations into European pork and dairy products, and placed tariffs on French cognac and armagnac. It has criticized new EU regulations of medical equipment sales and fears upcoming legislation that could further target Chinese industries, said Alicia García-Herrero, a China analyst at the Bruegel think tank. The EU has leverage because China needs to sell goods to the bloc, García-Herrero said. 'The EU remains China's largest export market, so China has every intention to keep it this way, especially given the pressure coming from the U.S.,' she said. China bristles at EU sanctions over Russia's war against Ukraine. The latest package included two Chinese banks that the EU accused of links to Russia's war industry. China's Commerce Ministry protested the listing and vowed to respond with 'necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises and financial institutions.' Buffeted between a combative Washington and a hardline Beijing, the EU has more publicly sought new alliances elsewhere, inking a trade pact with Indonesia and drafting trade deals with South America and Mexico. Costa and von der Leyen visited Tokyo the day before their meetings in Beijing, launching an alliance with Japan to boost economic cooperation, defend free trade and counter unfair trade practices. 'Both Europe and Japan see a world around us where protectionist instincts grow, weaknesses get weaponized, and every dependency exploited,' von der Leyen said. So it is normal that two like-minded partners come together to make each other stronger.' McNeil and Moritsugu write for the Associated Press. McNeil reported from Brussels. Mark Carlson in Brussels and Olivia Zhang in Beijing contributed to this report.

FineHeart Named Leader of the IPCEI Health Tech4Cure to Spearhead the Structuring of the European Implantable Medical Device Sector
FineHeart Named Leader of the IPCEI Health Tech4Cure to Spearhead the Structuring of the European Implantable Medical Device Sector

Business Wire

time12 minutes ago

  • Business Wire

FineHeart Named Leader of the IPCEI Health Tech4Cure to Spearhead the Structuring of the European Implantable Medical Device Sector

BORDEAUX, France--(BUSINESS WIRE)--FineHeart, a clinical-stage medical technology company specializing in the development of innovative solutions for cardiology, has been designated as the lead partner of the IPCEI Tech4Cure (Important Project of Common European Interest), dedicated to the implantable medical device (IMD) sector. This project is jointly notified by six EU Member States – France, Hungary, Italy, Latvia, Slovakia, and Slovenia FineHeart will carry out its SmartDMIA program to structure the innovative active implantable medical device (AIMD) sector, which is essential for public health and Europe's industrial autonomy, in synergy with other European laureates of the Tech4Cure program. Arnaud Mascarell, CEO and co-founder of FineHeart, said: " Being named leader of the IPCEI Tech4Cure with our SmartDMIA project is a source of immense pride. It is the recognition of our innovation ability and our technological and industrial leadership. This project will strengthen our sustainable growth and increase our international visibility. Together with our academic and industrial partners, we will build a sovereign, competitive and sustainable AIMD industry serving the health of European citizens." The Smart DMIA project will cover the entire value chain—from design to industrialization—of next-generation active implantable medical devices (AIMDs), for which energy supply is a major technological and medical challenge. The main development areas are: Extending the lifespan of encapsulated electronic components, enabling the integration of miniaturized transcutaneous energy and data transfer systems Developing universal interoperability between devices, regardless of their power (from a few milliwatts to 30 W), to optimize energy management and diagnostics and promote personalized medicine (5P medicine) Harmonization of standards for communication, cybersecurity, and interconnection with hospital systems and digital platforms. FineHeart will leverage its R&D know-how perfected during the development of FlowMaker®, the world's first and only miniaturized, fully implantable, wireless cardiac flow accelerator with no external battery for the treatment of advanced heart failure. This breakthrough device, currently in European clinical trials, adapts to the progression of the disease and provides physiological support synchronized with the heart's natural contractions. Through this pioneering role, FineHeart has become a strategic player in the transformation of the European AIMD sector, contributing its expertise and supporting European industrial competitiveness. About the PIIEC Launched by France in 2022, the PIIEC Santé aims to create a "Europe of Health" by promoting the emergence of European champions in disruptive technologies in the sector. This initiative aims to strengthen European production capacities in the health field, while stimulating the formation of ambitious European partnerships around innovative projects, thus ensuring European sovereignty. Coordinated by the Directorate-General for Enterprise (DGE), this project is being rolled out in two complementary waves: the first, authorized on May 28, 2024, targets essential medicines and critical molecules (Med4Cure); the second, entitled Tech4Cure, is dedicated to innovative MedTech medical devices (Tech4Cure). Tech4Cure aims to establish projects at European level focusing on: The lifespan of active implantable medical devices, in particular the lifespan of batteries and any components, materials, and technologies designed to extend the lifespan of active implantable medical devices, thereby promoting the digital and ecological transition. Connected and portable medical imaging solutions to promote more compact imaging devices, harnessing the potential of AI and IoT to facilitate remote examinations and increase the pool of available equipment. Sustainable design of medical devices, by strengthening the ecological transition in the design of medical devices, in particular through the use of biomaterials and eco-design to stimulate innovation in raw material supply and sustainability. About FineHeart - FineHeart

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store