Shell and Delek can’t get it done in Canada
Canada Products (Shell) and Delek US Holdings, Inc. have agreed to end negotiations regarding a potential sale of the Shell Montreal East refinery. Shell and Delek US met last week in an effort to address outstanding issues that both parties had been unable to resolve in negotiations held earlier this year. Negotiations once again reached an impasse, leading both parties to terminate discussions.
"Unfortunately, after considerable efforts to find common ground on a number of complex issues, both sides have determined not to pursue further negotiations with regard to the Montreal East Refinery," said Uzi Yemin, president of Delek US Holdings.
"We thank Delek US for their interest in the Montreal East Refinery," said Richard Oblath of Shell. "This concludes a more than one-year process conducted by us to find a buyer for the Montreal East refinery. During this time, more than 100 companies were contacted regarding the asset, none of whom saw an acceptable future for the site as a refinery."
"Because no buyer for the refinery had been identified by the end of last year, we announced on January 7, 2010 that we intended to convert the refinery to a terminal and so started detailed planning for the conversion," said Oblath. "Although we retained hope that a buyer could be found, the conversion was planned in parallel to the sale process, since there was no guarantee a sale would occur."
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