The Monterrey-based company Iconn has signed an agreement to acquire the British brand Shell Mobility’s business in Mexico, according to a statement issued by the company’s CEO, Luis A. Chapa, to his staff.
The document obtained by El Financiero states that the transaction is subject to authorization by the corresponding regulatory authorities, which is expected to occur in the third quarter of this year.
It should be noted that this agreement does not mean Shell will leave the country, as once the acquisition is completed, Iconn, the company that operates 7-Eleven convenience stores and Petro Seven gas stations in Mexico, will assume management of Shell’s operations in Mexico, maintaining its brand and complementary brands in the market.
“We will work to ensure an orderly and efficient integration,” the statement reads.
Alejandro Montufar, CEO of PETROIntelligence, explained to El Financiero that the signing of this agreement focuses on Shell’s marketing business.
Therefore, Montufar saw this business move as meaning Iconn would be the new entity in charge of growing the Shell brand in Mexico.
“I don’t see Shell abandoning Mexico, but rather minimizing corporate costs. Instead of having its own team managing the marketing business, a third party will now be doing it, and they chose Iconn, a company with a lot of experience,” he said.
Montufar added that a major attraction of the Shell brand in Mexico is that it has an import permit, making it worthwhile for them to continue selling and importing fuels from its refineries to the country.
“Shell is also considering buying BP globally, so it seems they are focusing on the upstream business (exploration and production), and in the downstream businesses (processing, distribution, and marketing), they are looking at ways to achieve greater efficiency in their operations,” he noted.
Iconn emphasized that Shell is a brand with a significant international presence and high recognition in the country.
Its portfolio in Mexico includes 214 service stations operated directly and through dealerships, convenience stores, a fleet management platform, Shell Solutions, and a fuel supply business.
“This acquisition represents a strategic opportunity to strengthen Iconn’s market position in our mission to continue making life easier for our customers. Until the approval and transition process is complete, both companies will continue to operate independently and will be considered competitors,” Iconn emphasized in a message sent to its employees.
Source: elfinanciero
