Shell to sell shareholding in refiner Showa Shell to Idemitsu

Source:Shell

Shell to sell shareholding in refiner Showa Shell to Idemitsu

Shell has reached an agreement with Idemitsu for the sale of 125,261,200 shares in Showa Shell Sekiyu KK, representing a 33.24% shareholding in the company, for a total amount of JPY 169 billion (approximately US$1.4 billion). Shell will retain a 1.80% holding in the company. “The sale is consistent with Shell’s strategy to concentrate its Downstream footprint on a smaller number of assets and markets where it can be most competitive,” said John Abbott, Shell Downstream Director. “Idemitsu is an established and successful company and is well positioned to take up Shell’s shareholding.”

Shell’s presence in Japan spans more than 100 years and it remains an important LNG market for Shell’s Upstream integrated gas business. It also remains an important market for Shell’s Downstream business conducted in partnership with Showa Shell, including lubricants, chemicals and trading. Shell will continue to license its brand to Showa Shell for use in its retail business.

Other recent Downstream divestments include the sale of Downstream businesses in Australia and Italy; a number of retail sites in the UK; and the initial public offering of, and further drop downs to, Shell Midstream Partners L.P. Shell has also agreed the sale of its marketing business in Denmark and Norway and its LPG businesses in France.

The transaction is expected to complete in 2016, subject to obtaining regulatory and contractual approval.

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

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs