Essar Oil to buy Shell’s UK unit
Essar Group arm Essar Oil is set to buy Royal Dutch Shell’s Stanlow refinery in the UK for $350-400 million (R1,589-1,816 crore), two sources said on Thursday.business Updated: Feb 17, 2011 21:41 IST
Essar Group arm Essar Oil is set to buy Royal Dutch Shell’s Stanlow refinery in the UK for $350-400 million (R1,589-1,816 crore), two sources said on Thursday.
The two companies have agreed on the terms and an announcement is expected soon, sources said.
Essar group is controlled by Shashi and Ravi Ruia, who also run London-listed Essar Energy.
Essar Oil and Shell will sign an agreement on the deal “very soon”, one source said, adding the acquisition will be funded through internal accruals.
Shell put plants at Stanlow in northwest England and at Heide and Hamburg in Germany on the market and media reports have valued them at between £1-1.5 billion ($1.6-2.4 billion).
“Essar can confirm that it is still in talks with Shell for the purchase of its Stanlow refinery and associated marketing businesses. Talks are progressing but we cannot comment on details or timelines,” an Essar spokesman said in an email reply.
The Stanlow refinery has a capacity to process 267,000 barrels per day. In December, Shell had told employees at its Stanlow refinery that Essar group had made a “credible” bid for the plant.