Press release. 30th 2015.
Shell has announced that it has agreed to sell a 33.24% shareholding in Showa Shell Sekiyu KK to Idemitsu for approximately US$1.4 billion. Shell will retain a 1.80% holding in the company.
In a statement, Shell said that Japan remains an important LNG market for its upstream integrated gas business, as well as its downstream business conducted in partnership with Showa Shell, including lubricants, chemicals and trading.
John Abbott, Shell Downstream Director, said: “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 […] Idemitsu is an established and successful company and is well positioned to take up Shell’s shareholding.”
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.
Shell will continue to license its brand to Showa Shell for use in its retail business. The transaction is expected to complete in 2016, subject to obtaining regulatory and contractual approval.
Edited from press release by Callum O’Reilly in LNG industry