Shell sells 33% of shares in Japan refiner to Idemitsu
Shell has reached an agreement to sell 33% of its shares in Japan's Showa Shell Sekiyu KK refiner to Idemitsu Kosan Co. for about 169 million yen ($1.4 billion).
After the purchase of 125.3 million shares by Idemitsu, a Japanese company which works in the upstream and downstream segments of the Japanese petroleum industry, Shell will keep a 1.80% of shares in Showa Shell Sekiyu KK.
“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.”
Showa Shell will remain an important partner for Shell in their downstream business, with significant lubricant and chemicals trading in the country. The Dutch oil giant will also continue to license its brand to Showa Shell for use in its retail business.
The transaction is scheduled to be completed in 2016, with Showa Shell and Idemitsu discussing a future merger, reports Bloomberg.