Shell to sell its
shareholding in 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
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.