Shell to sell downstream businesses in Finland and Sweden

abarrelfull wrote on 28 Oct 2010 05:41
Tags: downstream finland refinery shell sweden

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Shell announced today that it has agreed to sell the majority(*1) of its refining and marketing businesses in Finland and Sweden to Keele Oy.

Keele Oy is the major shareholder of St1 Holding Oy, whose businesses include fuel retail networks in Finland, Sweden, Norway and Poland.

The terms of the transaction, which are subject to regulatory approvals, include Shell’s retail business, including some 340 service station in Sweden and some 225 in Finland as well as its commercial road transport (CRT) in both markets. All service stations together with the CRT business will remain Shell-branded in both markets under a licensing agreement(*2). Also included is Shell’s 87,000-barrels-per-day Gothenburg Refinery, Shell’s bulk fuels business in both markets and the Shell marine business in Sweden. The businesses will be sold as going concerns and Shell will receive a total cash payment of $640 million.

This announcement follows a review by Shell of its downstream businesses in the two countries. Commenting on the deal Mark Williams, Royal Dutch Shell’s Downstream Director, said: “This transaction is consistent with Shell’s Downstream strategy to reduce net refining capacity by 15 percent, to reduce our marketing footprint, and focus the portfolio on profitability and growth potential.”

Notes to editors
(*1) Not included under the scope of this deal are Shell’s aviation and liquefied petroleum gas (LPG) businesses in Finland and Sweden, whose future will be the subject of separate announcements. The upstream business exploring for natural gas in southern Sweden remains out of scope of this transaction.

(*2) The transaction includes the signing of a Retail Brand License Agreement for the continued use of the Shell brand in the Retail and commercial road transport (CRT) markets in both countries.
Royal Dutch Shell plc
Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 90 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit www.shell.com

Shell to sell downstream businesses in Finland and Sweden

• Note: The deal includes the Shell Goteborg Refinery

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