Shell Mulls Sale of Chemical Assets in Europe and US, Reports Wall Street Journal
(Reuters) – Shell is considering a potential sale of its chemicals assets in Europe and the United States, the Wall Street Journal reported on Sunday, citing sources familiar with the matter.
The energy group has hired Morgan Stanley to conduct a strategic review of its chemicals operations, the report said.
Shell declined to comment. Morgan Stanley did not immediately respond to a request for comment outside regular business hours.
The review is in its early stages and Shell has not yet made any definitive decisions regarding a potential sale, the Journal reported, adding that one of the assets included in the review was Shell’s Deer Park facility in Texas.
Last year Shell sold its refining and chemicals hub in Singapore, one of the world’s largest.
The British company warned earlier this year that it expects trading in its chemicals and oil products division to be significantly lower quarter-on-quarter due to lower seasonal demand.
(Reporting by Bipasha Dey in Bengaluru; additional reporting by Gursimran Kaur, Editing by Ros Russell and Jane Merriman)
Shell, one of the leading energy companies, is reportedly contemplating the sale of its chemicals assets in Europe and the United States, as per a recent report by the Wall Street Journal. Sources familiar with the matter revealed that Shell has engaged Morgan Stanley to undertake a strategic review of its chemicals operations.
Although Shell declined to provide any comments on the matter, the review is said to be in its initial stages with no definitive decisions made regarding a potential sale. The Wall Street Journal mentioned that among the assets under review is Shell’s Deer Park facility located in Texas. This move comes after Shell’s sale of its refining and chemicals hub in Singapore last year, which was one of the largest in the world.
Earlier this year, the British company had cautioned about a significant decrease in trading within its chemicals and oil products division due to lower seasonal demand. This potential sale of chemical assets signifies Shell’s strategic shift in its business operations.
The outcome of the review conducted by Morgan Stanley could have a significant impact on Shell’s future business strategy and financial performance. Investors and industry experts will be closely monitoring any developments in this regard.
For more updates on this story, stay tuned for further reports.
