Royal Dutch Shell plc (Shell) announced today that it has signed Sale and Purchase agreements for the sale of its Downstream sales and marketing businesses in the following Pacific Islands: - Shell’s businesses in Fiji and Tonga will be purchased by Total France SA.
- Shell’s businesses in New Caledonia, Vanuatu and French Polynesia will be purchased by Albert Moux and Partners, a consortium whose Principal is Shell’s current co-venturer in French Polynesia, Albert Moux.
- Shell’s businesses in the Cook Islands and Solomon Islands will be the subject of a further announcement.
The agreements relate to Shell’s Aviation, Marine, Lubricants, Commercial Fuels, Distribution and Retail businesses and include a network of 65 retail service stations and 12 storage and distribution depots. The specific terms of this transaction are confidential and the sale is expected to be completed in the coming months, subject to regulatory approvals. The divestment is consistent with Shell’s strategy of managing its portfolio to deliver maximum value to customers and shareholders. In general, Shell in the Pacific Islands has been operating in a market with good long-term prospects, a loyal customer base, professional staff, and reliable business partners. However the business in the Pacific Islands from Shell’s perspective remains small. Shell’s decision to sell these businesses is based on the following: - The businesses have a history of good cash and operational performance, however Shell is focusing its portfolio toward fewer, larger scale businesses, and
- The businesses are of higher value to the purchasing companies, which have differing management priorities and capital focus.
These businesses are to be sold as going concerns. Shell has negotiated a bulk fuels supply agreement with each purchasing company for supply of Shell high quality fuels for up to five years following the sale. In New Caledonia, Vanuatu and French Polynesia, Mr Moux & Partners consortium will continue to use the Shell brand under a Trade Mark Licence Agreement at selected retail service stations and will continue to sell Shell branded lubricants, thereby maintaining awareness of the Shell brand in the region. Shell’s priority now is to work with its employees, customers and other stakeholders to ensure a smooth transition and jointly grow the business.
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