Shell today announced it has agreed to sell most of its
downstream business in Chile to Quiñenco for a total
consideration of some $614 million.
Under a separate agreement, Quiñenco has also been
appointed as a Macro Distributor to market, sell and distribute
Shell branded lubricants in Chile and will become the delivery
service provider for Shell Marine Products' international
customers in the country.
The proposed sale, which covers all Shells existing
retail, commercial fuels, bitumen and chemicals businesses, in
addition to related supply and distribution
infrastructure in Chile, follows a review by Shell of its
downstream businesses in the country and is consistent with the
companys strategy to concentrate its global downstream
portfolio into fewer and larger markets. The retail network of
about 300 sites will continue to be Shell-branded through a
trademark license agreement.
This deal is consistent with our strategy to concentrate
our downstream footprint and I strongly believe it is in the
best possible interests of staff, Shell shareholders and our
customers, said Mark Williams, Royal Dutch Shells
downstream director. Quiñenco will continue to
provide the high quality Shell products that our Chilean
customers have come to trust and rely on over many
Shell and Quiñenco will now concentrate on securing
necessary steps for the completion of the proposed deal.