Background on Shell Mobility and Relevance
Shell Mobility, a prominent international energy company, is set to leave Mexico. The decision comes after the Mexican government temporarily suspended Valero Energy’s import permits for fuels earlier this April. This move aligns with the federal government’s intensified efforts to combat illegal fuel smuggling, known as ‘huachicol fiscal’.
Iconn Acquires Shell Mobility in Mexico
According to an internal memo addressed to employees, Mexican company Iconn has signed an agreement to acquire Shell Mobility’s business and brand in Mexico. The transaction is subject to regulatory approval, expected by the third quarter of 2025.
Shell’s Presence and Portfolio in Mexico
“Shell is a well-known international brand with significant presence and recognition in the country,” stated Luis Chapa, President of the Board and CEO of Iconn.
Shell Mobility’s portfolio in Mexico comprises directly operated and concession-based gas stations, convenience stores, a fleet management platform “Shell Solutions,” fuel supply business, and an import permit. These assets will now be under Iconn’s control.
Continued Independent Operations
Until the approval and transition process is complete, both companies will continue operating independently as competitors.
Key Questions and Answers
- Who is Shell Mobility? Shell Mobility is a significant international energy company operating in various sectors, including retail fueling stations.
- Why is Shell leaving Mexico? The Mexican government temporarily suspended Valero Energy’s import permits for fuels, prompting Shell to reconsider its operations in the country.
- Who is acquiring Shell Mobility’s business in Mexico? Iconn, a Mexican company that owns the 7-Eleven and Petro Seven brands, is purchasing Shell Mobility’s business in Mexico.
- What does the acquisition include? The deal encompasses Shell’s gas stations, convenience stores, fleet management platform, fuel supply business, and import permit in Mexico.
- When will the acquisition be finalized? The transaction is subject to regulatory approval, expected by the third quarter of 2025.
- Will Shell and Iconn continue to operate independently? Yes, both companies will maintain independent operations until the approval and transition process is completed.
