Shell plc SHEL is set to expand its presence in the U.S. fuel and convenience retail market by acquiring the remaining 67% stake in Tri Star Energy, taking its ownership from 33% to 100%. The financial terms of the transaction were not disclosed. The deal will give Shell full ownership of 320 fuel and convenience retail sites across Tennessee and nearby states, while also adding supply agreements covering 552 dealer-owned locations.

The acquisition is expected to significantly increase Shell's company-owned retail footprint in the Southern United States. Tri Star operates across the Southeastern United States, with a strong presence in the Nashville market, and brings established assets and a loyal customer base to Shell's portfolio.

SHEL's Focused Move Toward Higher-Return Businesses

The transaction fits Shell's broader strategy of directing capital toward businesses where it has competitive advantages and can generate attractive returns. The company has previously outlined plans to focus growth investment on selected markets, with the United States among the key markets for its Mobility & Convenience business. Shell plans to allocate 80% of growth cash capital expenditure in this business to 10 key markets.

The acquisition also appears financially attractive for Shell. According to the company, the investment is projected to generate an internal rate of return above the hurdle rate established for its marketing business. This supports the rationale behind expanding its ownership in a market where Shell already has a substantial operating base.

Deal Could More Than Double Company-Owned Sites

Shell already operates the largest branded fuel network in the United States, with approximately 12,000 primarily wholesaler- and dealer-owned fuel and convenience retail sites across 49 states. These locations serve more than 7 million customers daily.

Following the acquisition, Shell's U.S. Mobility & Convenience portfolio is expected to include nearly 550 company-owned convenience retail sites, along with supply agreements covering approximately 650 dealer-owned locations across the Southern United States. This will substantially strengthen the company's direct ownership and operating presence in the region.

Closing Expected by the End of 2026

Once completed, Tri Star will be operated by Texas Petroleum Group, a wholly owned Shell subsidiary. The transaction is expected to close by the end of 2026, subject to regulatory approval and other customary closing conditions.

Overall, the Tri Star acquisition reinforces Shell's commitment to the U.S. Mobility & Convenience business. By taking full control of an established retail network, Shell is expanding its company-owned footprint while focusing capital on a market where it already has scale, customer reach and established competitive advantages.