Royal Dutch Shell plc (Shell) announced the completion of two divestments from its global downstream portfolio.
In France, the company has completed the sale of its Butagaz LPG business to DCC Energy for EUR 464 million (USD 510 million). The transaction is a share sale and all Butagaz staff, together with the Butagaz brand, have been passed on to DCC Energy.
The completion follows the announcement in May 2015 that Shell had received a binding offer from DCC and follows consultation with the staff councils of Butagaz and Shell France, as well as regulatory approval. Shell’s other businesses in France—aviation, commercial fleet, lubricants, retail, and bitumen—are not impacted by this transaction.
Separately, Shell has also completed the sale of its 75% interest in Tongyi Lubricants in China to Huo’s Group and The Carlyle Group, following regulatory approval. The commercial terms of the agreement remain confidential. The Carlyle Group will take the majority stake in Tongyi Lubricants.
Both divestments are consistent with Shell’s strategy to concentrate its downstream footprint on assets and markets where it can be most competitive, and to divest its LPG businesses worldwide, the company said.