Shell Sells Chile Fuel Business to Quinenco for $614 Million
Royal Dutch Shell Plc (RDSA) sold most of its fuel business in Chile to Quinenco for $614 million as it focuses on increasing global production.
The sale will cover Shell’s retail, commercial fuels, bitumen and chemicals businesses, the Hague-based company said in a statement today. The disposal is part of plans to operate in fewer and larger markets for the half of the business that brings fuel to consumers, it said.
Chief Executive Officer Peter Voser last month pledged $1 billion of extra cost cuts in refining and marketing as the company tries to accelerate output growth through 2014. Voser is targeting $5 billion in asset sales this year.
“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, head of Shell’s downstream business. “Quinenco will continue to provide the high quality Shell products that our Chilean customers have come to trust and rely on over many decades.”
To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net
To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net
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