Shell to divest downstream units in Africa

Shell is divesting most of its shareholding in its downstream businesses including Shell Mauritius in Africa to two joint venture partners, Vitol Group and Helios Investment Partners, for US$1 billion. Two new joint venture companies will be formed as part of the agreement. According to Shell, one company will be 80% owned by Vitol and Helios and 20% owned by Shell. This venture will be responsible for maintaining and operating the existing oil products, distribution and retailing in 14 African countries. A second venture owned half by Shell and half by Vitol and Helios will own and operate all existing lubricants plants in seven countries. A phased in completion of the proposed deal will take place in 2011 and the first half of 2012, pending regulatory approval. (February 21,2011)