Shell Mobility has announced its exit from Mexico, selling its brand and service stations to the Mexican company Iconn, which owns 7-Eleven and Petro Seven. The decision comes amid regulatory challenges and shifting market dynamics in the country.
Iconn has signed an agreement to acquire Shell Mobility’s business in Mexico, including its network of gas stations, convenience stores, fleet management platform, and fuel supply operations. The transaction is still subject to regulatory approval, which is expected to be completed in the third quarter of 2025. Until then, both companies will continue to operate independently and remain competitors in the fuel market.
Shell’s departure follows increased government scrutiny over fuel imports and efforts to combat illegal fuel trade. Earlier in April, the Mexican government temporarily suspended fuel import permits for Valero Energy, a move that signaled tighter regulations in the sector. While Shell is withdrawing from the retail fuel business in Mexico, it will maintain other operations in the country, such as lubricants and industrial energy solutions.
Despite the sale, Shell’s brand will not disappear entirely from Mexico. Iconn will continue to operate existing Shell-branded stations, though some may gradually transition to Petro Seven. The acquisition strengthens Iconn’s position in the fuel market, expanding its footprint and leveraging Shell’s established presence.
Industry analysts suggest that Shell’s exit aligns with its global strategy to focus on upstream operations, including exploration and production. The company has been shifting resources toward acquiring other energy brands, such as BP, and reinforcing its presence in high-value markets.
Shell’s departure marks a significant shift in Mexico’s fuel industry, reflecting broader changes in the country’s regulatory landscape and competitive environment.
Source: El Economista
