DCC Energy has reached an agreement to acquire Shell Gas (LPG) Holdings' liquefied petroleum gas (LPG) business in Hong Kong and Macau for approximately £120m.
The acquisition requires certain regulatory consents and operating licence approvals and is expected to be closed before 31 March next year.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
DCC chief executive Tommy Breen said: “The acquisition of Shell's LPG business in Hong Kong and Macau is an exciting development for DCC and is consistent with our ambition to build a substantial presence in the global LPG market.
“The acquisition represents a further strengthening of our relationship with Shell and gives us a strong market position in Hong Kong and Macau.
“It is also DCC's first material step in building its business outside of Europe and gives DCC a platform for development in the growing LPG market in Asia.”
Shell LPG business has been operating for more than 60 years in Hong Kong and Macau.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataShell downstream director John Abbott said: “This sale supports Shell’s strategic commitment to focus Downstream activities on areas where we can be most competitive.
“This is one of the last of our wholly owned LPG businesses and this sale is another step in Shell’s ongoing portfolio optimisation strategy to deliver $30 billion of divestments between 2016 and 2018.”
Last year, the business supplied nearly 74,000t of LPG to its customers.
After the completion of this transaction, a long-term brand licence agreement will be executed that will enable the business to operate under the Shell brand in both Hong Kong and Macau.
All Shell LPG employees will be transferred to DCC Energy.
DCC Energy expects that this acquisition will fortify its strategy to develop a significant presence in the global LPG market.
