The acquisition of the travel centre operator is subject to regulatory and TA shareholder approval, however, will be for $1.3bn in cash.

With an extensive network of highway sites across the US, the purchase of TA is hoped to compliment bp’s existing predominantly off-highway convenience and mobility business.

bp says the acquisition will bring advantages in fuel and biofuel supply, while also giving the option to expand and develop new mobility offers including electric vehicle (EV) charging, biofuels, renewable natural gas (RNG), and later hydrogen, for both passenger vehicles and fleets.

Earlier this month (February 2023) bp announced it would invest up to $8bn more into transition growth engines (TGEs) by 2030, including renewables and hydrogen, upon announcing record profits of $27.7bn in 2022.

Read more: bp targets double-digit return from hydrogen after announcing record profits

Under its strategic transition growth engines, between 2023 and 2030, bp aims that around half of its cumulative $55-65bn transition TGE investment will go into convenience, bioenergy, and EV charging.

“This deal will grow our convenience and mobility footprint across the US and grow earnings with attractive returns,” said Bernard Looney, CEO of bp. “Over time, it will allow us to advance four of our five strategic transition growth engines. By enabling growth in EV charging, biofuels and RNG and later hydrogen, we can help our customers decarbonise their fleets. It’s a compelling combination.”

TravelCenters of America and Nikola Corporation in 2021 announced a collaboration to install hydrogen stations for heavy-duty trucks at two existing TA sites in California, US, which were expected to enter commercial operations by the first quarter of 2023.

Read more: Nikola, TravelCenters of America unveil plans for hydrogen stations

H2 View understands the acquisition is expected to bring around 280 TA sites across 44 US states into bp’s portfolio. bp says around 70% of TA’s total gross margin is generated by its convenience services business.

Dave Lawler, Chairman and President of bp America, commented, “Subject to approvals, we look forward to welcoming the TA team to bp.  TA’s amazing nationwide network of on-highway locations combined with bp’s more than 8,000 off-highway locations have the potential to offer travellers and professional drivers a seamless experience for decades to come.”