Shell to sell downstream businesses in Finland and Sweden
Shell has agreed to sell the majority 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. Also included is Shell’s 87,000-bpd 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%, to reduce our marketing footprint and focus the portfolio on profitability and growth potential.”
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