Shell in Talks With Vitol, Helios About Sale of Retail Units Across Africa

Royal Dutch Shell Plc said it’s in exclusive talks with Vitol Group and Helios Investment Partners LLP over its planned sale of interests in 19 African retail and distribution units.

“Under the terms of the proposed deal, which would see the Shell brand and products remain in each country, Vitol and Helios would become the majority shareholders in the businesses, with Shell retaining a shareholding,” Shell Oil Products said in an e-mailed statement today.

Shell said in April it’s reviewing its downstream businesses in 21 African countries and other regions to focus on fewer, larger markets. The businesses under review in Africa are profitable, Shell said at the time. The countries include Morocco, Egypt, Ghana, Togo, Kenya, Uganda, Tanzania, Botswana and Namibia among others.

“We’re talking about 1,350 retail sites and about 2,000 staff members,” Dennis Matsane, a spokesman for Shell, said by mobile phone in Johannesburg today, declining to disclose the potential deal value. Shell’s fuels, lubricants, refining and liquefied petroleum gas businesses in South Africa are not part of the deal, according to the statement.

To contact the reporters on this story: Carli Lourens in Johannesburg at clourens@bloomberg.net;

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