Sale of Shell's Africa business

Shell has announced that it is in talks with Vitol and Helios Investment Partners for a potential acquisition of its African downstream business.  The two companies would acquire an undisclosed majority stake in Shell’s downstream businesses in 19 countries in Africa.

Shell did not disclose the details of the negotiations, with their sales and operations manager, Pramouth Domun, insisting “details of the negotiations, including time-scales, will remain confidential.”

Domun said Vitol Group and Helios Investment Partners are negotiating a deal to buy equity in Shell’s African downstream business which would see the Shell brand and products remain in each country. Vital and Helios would become the majority shareholders in the business with shell retaining shareholding.

“The Vitol Group is one of the largest multi-billion dollar oil conglomerate and Helios Investment Partners, an African founded and managed investment firm would become the majority shareholders in the businesses, with Shell retaining a shareholding. “The deal would mark a new step for Vitol Group in supplying end users. The company, best known as an oil trader, has other businesses including exploration, production and storage,” Domun said.

PetrolWorld, Monday 26 July 2010.