Shell completes $1.4 billion sale of Showa Shell Sekiyu holdings

Shell said it recently completed a $1.4 billion sale of its 31.2 percent shareholder stake in Japan's Showa Shell Sekiyu K.K. to Idemitsu Kosan Co. Ltd., a transaction that will not impact the company’s upstream businesses but continues an emphasis on downstream activities.

“Shell has enjoyed a long and valuable partnership with Showa Shell since the year 1900,” Shell Downstream Director John Abbott said in a news release. “I would like to thank ( Showa Shell) CEO Tsuyoshi Kameoka, the management and the board of directors for their leadership and support, as well as those leaders who have preceded them over the last century.”

Shell’s current strategy for downstream areas is to focus on those segments that will allow the company to be most competitive, though the company still plans to focus on Japan as an important liquefied natural gas market.

The sale’s completion comes after approval from Japan’s Fair Trade Commission.
 
“I wish the company success and look forward to seeing the commercial linkages and a new relationship between our two companies over the coming years,” Abbott said.