Shell has agreed to take full control of U.S. convenience store operator and fuel distributor Tri Star Energy, in a transaction that will more than double the energy major’s company-owned convenience retail footprint in the United States.
Equilon Enterprises, which operates as Shell Oil Products US, will increase its ownership of Nashville-based Tri Star from 33% to 100%. The acquisition includes 320 fuel and convenience retail sites in Tennessee and surrounding states, along with fuel-supply agreements covering another 552 dealer-owned locations. Financial terms were not disclosed.
Shell is acquiring the remaining interest from The Parman Corporation, Kimbro Oil Company and their subsidiaries. The deal is expected to close by the end of 2026, subject to regulatory approval and customary closing conditions.
The transaction represents a substantial expansion of Shell’s directly controlled retail operations. While Shell already has around 12,000 branded fuel and convenience sites across 49 U.S. states, the vast majority are operated by wholesalers or dealers rather than owned directly by the company. Shell says its U.S. network serves more than 7 million customers per day.
Following completion, Tri Star will be operated by Texas Petroleum Group, a wholly owned unit of Shell Mobility & Convenience US. Shell expects the combined business to have nearly 550 company-owned convenience retail locations and supply agreements with around 650 dealer-owned sites across the southern United States.
Tri Star, founded in 2000, operates convenience-store brands including Twice Daily, Sudden Service and Little General and also owns the White Bison Coffee brand. Its wholesale fuel operation reaches multiple states, giving Shell additional exposure to both fuel distribution and higher-margin convenience and food-and-beverage sales.
The acquisition builds on a multiyear expansion of Shell’s company-operated U.S. retail business. Shell completed its acquisition of the Landmark/Timewise retail network in 2022 after agreeing to buy 248 company-owned sites and associated supply agreements. In 2024, it added another 45 locations in New Mexico through the acquisition of Brewer Oil Company’s retail division.
The latest deal also fits Shell’s broader capital-allocation strategy. At its 2025 Capital Markets Day, the company said it planned to direct 80% of Mobility cash capital expenditure to 10 priority markets that generate most of the segment’s cash flow, including the United States, while seeking growth in convenience retail and other higher-value customer offerings.
Shell said the Tri Star investment is expected to deliver an internal rate of return above the hurdle rate used for its marketing business, although it provided no acquisition price or detailed financial projections.
By Charles Kennedy for Oilprice.com
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