DUBLIN: Ireland’s DCC Energy has made a binding offer to acquire Royal Dutch Shell’s Butagaz Liquefied Petroleum Gas (LPG) business in France for €464m (£337m, $529m).
Shares in DCC, the owner of DCC Energy, are trading up 9.98% at £48.28 as at 9.55am BST. Meanwhile, shares in Shell are trading down 0.15%.
In reply to this offer, DCC Energy has been granted exclusivity while Shell consults with the staff councils of both Butagaz and Shell France,” Shell said in a statement.
Shell noted that the transaction is also subject to obtaining regulatory approvals following these consultations. The deal is expected to be settled in 2015.
The company added that its other French businesses, including aviation, commercial fleet, lubricants, and retail and specialties will continue to operate as before.
The transaction 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, and is part of an on-going exit from the LPG business globally,” Shell said.
The Anglo-Dutch oil major has been working hard to sell its European LPG operations, and had reportedly appointed Credit Suisse to advise on an auction.
The deal comes as the company was able to agree on the assets’ price, given the improved deal-making environment in Europe.
Shell has already disposed a number of downstream assets, including some of its Norwegian and British retail businesses, and refineries in Britain, Germany, France, Norway and the Czech Republic.
