Gunvor, Adnoc Shortlisted for Shell South Africa Unit

Abu Dhabi Nationwide Oil Co. and Swiss commodities buying and selling agency Gunvor are amongst corporations which were shortlisted to purchase Shell Plc’s downstream property in South Africa, in keeping with folks aware of the matter. 

The 2 corporations are robust contenders for the property which can be valued at about $1 billion, stated the folks, who requested to not be recognized as the knowledge is personal. Earlier potential bidders together with Trafigura’s Puma Vitality, Sasol Ltd. and South Africa’s PetroSA are now not within the working, two of the folks stated. 

“Whereas Adnoc Distribution commonly critiques alternatives for home and worldwide progress, we don’t touch upon market hypothesis,” Adnoc’s gasoline retail unit stated. Shell, Gunvor, Trafigura and Sasol declined to remark. PetroSA didn’t instantly reply to a request for remark.

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Shell has been seeking to offload the property, which embody about 600 gasoline stations and buying and selling operations in Africa’s greatest economic system, as a part of a broader technique to give attention to areas and companies that provide larger returns. The property are enticing for buying and selling companies since they guarantee demand for fuels that they will then provide. Adnoc and different Center East oil corporations akin to Saudi Aramco have been increasing their buying and selling arms as they give the impression of being to interrupt into new markets.  

Shell is working with adviser Rothschild & Co and a winner may very well be introduced within the coming weeks, the folks stated. Talks are persevering with and there’s no certainty there might be a closing sale, they stated. Saudi Aramco has additionally been concerned within the course of, however it wasn’t instantly clear if it was nonetheless within the working, the folks stated. Aramco declined to remark.

A deal would give the client about 10% of South Africa’s gasoline stations. The market within the nation has modified considerably lately with dealer Glencore Plc buying Chevron Corp.’s Caltex-branded stations a number of years again, whereas dealer Vitol Group’s Vivo Vitality final yr purchased Engen Ltd., the African nation’s largest fuel station chain. 

Shell itself offered South Africa’s largest refinery to the state-owned Central Vitality Fund after the oil main had stopped processing there in 2022.

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