The deal with Esso means EG Group will operate about 3,500 stations across Europe

Euro Garages has bought about 1,000 Esso service stations in Germany as part of a 20-year partnership deal with Exxon Mobil.

The oil giant said the ‘strategic’ partnership with EG Deutschland, an affiliate of the EG Group, is to expand the Esso brand in Germany.

Under the deal, Exxon Mobil will convert its business to the branded wholesaler model. It will continue selling Exxon Mobil-supplied Synergy fuels and Mobil-branded lubricants at the Esso stations.

The deal means EG Group will operate about 3,500 stations across Europe.

In June, EG bought 1,176 Esso service stations in Italy from Exxon Mobil.

“The German market offers us great growth opportunities and is the logical extension of our business throughout Europe,” said Euro Garages founder and co-managing director Mohsin Issa.

“We already operate service stations in France, the UK and the Benelux countries. As a result, and through other recently announced acquisitions, we have established ourselves as one of Europe’s leading service station operators.”

Exxon Mobil will continue to develop and market the Esso brand in Germany after conversion to the branded wholesaler model is complete, which is expected during the fourth quarter of 2018.

EG Group will assume all responsibilities associated with operating the station network, subject to approval by the antitrust authorities, during the same period.

“Our conversion to a branded wholesaler model in Germany is consistent with Exxon Mobil’s approach in other European markets with the objective of growing the Esso brand,” said Exxon Mobil Central Europe Holding in Hamburg managing director Florian Barsch.

“Our long-term strategic partnership with EG Group will leverage our companies’ respective strengths and continue to provide Germany’s consumers with a reliable supply of high-quality Esso fuels.”