The Anglo-Dutch major frees up capital and resources as part of its wider corporate strategy
Testing a new strategy Image: Shell |
Shell has completed the sale of its 75% stake in Tongyi Lubricants to Huo's Group and Carlyle Group for an undisclosed amount.
Despite selling one of the few majority holdings of a key oil business by a foreign entity, Shell claims it remains committed to, and confident of, growth in the Chinese lubes market and is continuing to focus invest in its own Helix offering.
Meanwhile, the company has also completed the sale of its Butagaz LPG business to DCC Energy for €464m following an offer it received earlier in 2015.
The deal allows Shell to move away from capital-intensive LPG operations without affecting its aviation, bitumen, commercial fleet, lubricants and retail businesses in France.
The two divestments reflect Shell's strategy of reducing its involvement in LPG projects and concentrating its downstream efforts on assets and markets where it can be most competitive.