Total and Shell may sell gas station network in Reunion
Total SA and Royal Dutch Shell P.L.C. are in talks to sell their 50-50 joint venture, Société Réunionnaise de Produits Pétroliers (SRPP), a gas station network on the French island La Reunion. They are considering selling it to French oil and gas storage firm Rubis SCA, and following an irrevocable offer from Rubis, have agreed to open an exclusive period of negotiation.
SRPP is the market leader on La Reunion. It operates 51 gas stations on the island, and markets fuels, lubricants and gas Because of its position in the Indian Ocean, it would offer RUBIS more of a presence in that area, relatively near Madagascar and Comoros.
Total and Shell did not disclose a price for SRPP, but its 2014 sales amounted to EUR250 million (USD286 million). Now that an offer has been made, employee representatives and selling shareholders will be consulted.
If the sales offer is accepted by both parties, the transaction will be reviewed by the French Competition Authority before it becomes final.