INDEPENDENT NEWS

Shell Agrees Sale Of New Zealand Downstream Assets

Published: Mon 29 Mar 2010 12:36 PM
MEDIA RELEASE
Shell Agrees Sale Of New Zealand Downstream Assets
29 March, 2010 – Royal Dutch Shell plc (Shell) today announced it has signed a sale and purchase agreement to sell its downstream business in New Zealand to a consortium of Infratil and the Guardians of New Zealand Superannuation.
The deal includes all of Shell’s downstream assets in New Zealand (see notes to editors) but does not include the company’s upstream activities in the country. As part of the agreement, Shell will sell its 17.1% shareholding in the 104,000-barrel per day refinery at Marsden Point and also its network of more than 220 retail stations.
The business will be sold to the consortium as a going concern and Shell will receive a cash payment of NZ$696.5 million together with a working capital adjustment. In addition, the companies have signed an agreement for Shell to continue to provide crude oil and refined products. The parties have also entered into a trademark licensing agreement which entitles the consortium to operate retail service stations under the Shell brand.
Commenting on the announcement, Shell Downstream Director, Mark Williams said: “The decision to sell our New Zealand downstream business follows a comprehensive strategic review and fits with our drive to simplify our global downstream portfolio and concentrate on larger, integrated assets in growth markets.”
Adding his comments, Rob Jager, Country Chair, Shell New Zealand, said: “Having built up a strong and high quality business providing outstanding products and service to New Zealanders for close to 100 years, we are very pleased to have concluded our review with a sale to a buyer with strong New Zealand connections.
“With staff transferring to the new company and Shell continuing to supply products and the retail brand, there will be a high level of continuity for customers following the change in ownership. We are now focused on ensuring that we manage the smooth transition of the business,” said Mr Jager.
ENDS

Next in Business, Science, and Tech

Gaffer Tape And Glue Delivering New Zealand’s Mission Critical Services
By: John Mazenier
Ivan Skinner Award Winner Inspired By Real-life Earthquake Experience
By: Earthquake Commission
Consultation Opens On A Digital Currency For New Zealand
By: Reserve Bank
Ship Anchors May Cause Extensive And Long-lasting Damage To The Seafloor, According To New NIWA Research
By: NIWA
A Step Forward For Simpler Trade Between New Zealand And Singapore
By: New Zealand Customs Service
68% Say Make Banks Offer Fraud Protection
By: Horizon Research Limited
View as: DESKTOP | MOBILE © Scoop Media