Shell (NYSE: RDS.A) (NYSE: RDS.B) has agreed to sell most of its downstream business in Chile to Quinenco for a total consideration of some US $614 million.
Under a separate agreement, Quinenco has also been appointed as a Macro Distributor to market, sell and distribute Shell branded lubricants in Chile and will become the delivery service provider for Shell Marine Products' international customers in the country.
The proposed sale, which covers all Shell's existing Retail, Commercial Fuels, Bitumen and Chemicals businesses, in addition to related supply and distribution infrastructure in Chile, follows a review by Shell of its downstream businesses in the country and is consistent with the company's strategy to concentrate its global downstream portfolio into fewer and larger markets. The retail network of about 300 sites will continue to be Shell-branded through a trademark license agreement.
"This deal is consistent with our strategy to concentrate our Downstream footprint and I strongly believe it is in the best possible interests of staff, Shell shareholders and our customers," said Mark Williams, Royal Dutch Shell's Downstream Director. "Quinenco will continue to provide the high quality Shell products that our Chilean customers have come to trust and rely on over many decades."
Shell and Quinenco will now concentrate on securing necessary steps for the completion of the proposed deal.