Shell to buy BPCL stake in Bharat Shell

Royal Dutch Shell will buy Bharat Petroleum Corp. Ltd.’s (BPCL) 49% stake in lubricant marketing firm Bharat Shell (BSL) for Rs145.80 crores (US$37.2 million). Besides paying BPCL Rs145.8 crores (US$37.2 million) in cash, Shell will also takeover the state-run firm’s 49% of BSL’s debt amounting to Rs31.2 crores (US$7.9 million) as of March 31, 2006. Post-acquisition, Shell will remove Bharat from BSL. Both BPCL and Shell recognized the need for building their own brands independently in India and the state-run firm decided to exit BSL. Sources said the board of Shell had on May 10 approved the share purchase agreement with BPCL to acquire its 49% stake in BSL at a price not exceeding Rs177 crores (US$45.1 million). (October 5, 2007)