In a significant move within the budget fuel retail sector, a new alliance is formed between Portobello Capital, a Spanish investment group, and Tensile, an American fund. They have agreed to acquire and assume control of Plenoil, the largest network of low-cost service stations in Spain. This deal follows Cepsa’s recent entry into the low-cost segment through the acquisition of Ballenoil, marking a rapid shift in the country’s competitive landscape.
The Portobello consortium and Tensile will hold the controlling stake in Plenoil, which had previously been owned by four co-founders and the current fifth co-founder and chief executive, José Rodríguez de Arellano. He will keep his shareholding and continue to lead the company’s management as the new investors embark on an ambitious growth plan.
The partners aim to accelerate expansion with a three-step strategy designed to double the network size. The current 224 stations are slated to grow to at least 500 by 2027, with the group already planning to deploy in several new locations where sites are available. Portugal will also enter the geographic footprint this year as part of the plan.
Cepsa expands in the low-cost market with Ballenoil acquisition
Plenoil, established in 2015, operates a model centered on customer self-service via automatic payment at the pump. By year’s end, the group intends to have more than 75% of its stations offering this cashless payment option, and there are ongoing efforts to support charging infrastructure for electric vehicles as well.
José Rodríguez de Arellano, Plenoil’s CEO, expressed pride at the new investment from Tensile and Portobello. He highlighted that the partnership will accelerate growth in Spain and Portugal, while preserving Plenoil’s existing brand identity and business model.
Low-cost brands as an accelerator for growth
The expansion of alternative networks remains a driving force in Spain’s fuel retail sector. For years, the majority of new service stations have come from low-cost formats, gradually replacing traditional networks run by larger multinational groups such as Repsol, Cepsa, BP, Disa, and Galp.
Automatic stations, independent outlets, and stations tied to hypermarkets and supermarkets, along with cooperatives, constitute the growing low-cost landscape. This rapid proliferation has contributed to a national increase in service stations, with the Association of Petroleum Operators noting a total of 12,084 stations in operation at the end of 2022, a record for the country.
Since the early days of the market reform that ended Campsa’s monopoly in 1992, Spain has seen a steady climb in the number of service stations. Growth has been steady over three decades, with occasional minor declines, and the network has now doubled in size, reflecting a shift toward more accessible fuel retail options for consumers.
Policy moves to deter fraud in fuel sales
The Spanish fuel retail landscape has become more competitive, with alternative brands accounting for a growing share of the market. Major players have faced pressure as low-cost networks expand, prompting industry-wide attention to maintain integrity and consumer trust within an increasingly diverse marketplace.
In late last year, Cepsa announced the acquisition of Ballenoil’s low-cost network, adding approximately 200 stations to its footprint. The move positions Cepsa to potentially reach a scale comparable to Plenoil, with more than 2,000 service stations across the Iberian Peninsula, including Spain and Portugal. The company has signaled its intent to retain Ballenoil’s low-cost model and continue scaling the network toward the goal of around 500 Ballenoil stations by 2027.