Shell to sell Quinenco its downstream business in Chile for $614MM

Source: Shell

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.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs