Shell and Kuwait Petroleum International announced today that their respective affiliates have reached an agreement for the sale of shares in the companies containing the retail, supply and distribution logistics and aviation businesses in Italy.
The sale is subject to regulatory approval and is expected to close in 2014.
Under the agreement, Shell's retail network will be rebranded to Q8.
Shell's non-service station lubricants, marine gas and power, and upstream businesses in Italy are not impacted by the sale, and will continue to operate normally. Shell will continue to operate its lubricants business through Shell Italia Oil Products, and its gas and power business through Shell Energy Italia.
The sale is consistent with Shell's strategy to concentrate its downstream footprint on a smaller number of assets and markets where it can be most competitive.
Recent divestment examples include the sale of refineries in the UK, Germany, France, Norway and the Czech Republic; the sale of downstream businesses in Egypt, Spain, Greece, Finland and Sweden; and the establishment of a downstream joint venture across Africa.
All details of the sale are subject to commercial confidentiality.