Shell offloads Italian retail unit to Kuwait
FTSE 100 oil major Dutch Shell yesterday said it will sell its Italian retail, logistics and aviation businesses to Kuwait Petroleum International.
Under the agreement, Shell’s retail network of over 830 service stations in the country will be rebranded to Q8.
No value was disclosed for the deal, which is subject to regulatory approval and is expected to complete in 2014.
But a report in Italian daily MF said the network could be worth up to €500m (£411.4m).
“The sale is consistent with Shell’s strategy to concentrate Shell’s downstream footprint on a smaller number of assets and markets where we can be most competitive,” said the company in a statement.
Shell’s other businesses in Italy, including its upstream operations, will not be impacted by the sale. “Italy remains an important company for Shell,” it said.
Kuwait Petroleum already has about 2,700 petrol pump stations in Italy, with a market share of around 11 per cent.
Shares closed 0.7 per cent higher.
ADVISERS | SHELL AND KUWAIT PETROLEUM
RICHARD TOMLINSON
CLIFFORD CHANCE
Clifford Chance gave Shell legal advice on the transaction. The key members of the team were John Wilkins, Shell relationship partner in London, Umberto Penco Salvi in Milan, Richard Tomlinson, lead associate in London, and Giuseppe De Cola and Giovanni Bologna.
“This is a landmark deal for Italy, both for the oil & gas sector and for M&A generally,” said Wilkins. “We’re delighted to help Shell deliver on the implementation of their divestment strategy.”
Shell’s internal legal team included Julienne Baron and Tim Ware of the downstream portfolio group.
Kuwait Petroleum International was represented by Hogan Lovells, led by dual-qualified M&A partner Leah Dunlop, supported by London corporate energy partner and co-head of the firm’s oil and gas working group Ben Higson and his team.
Dunlop has worked on deals across a wide range of sectors including renewable energy, transport and financial institutions.