Shell has completed the sale of its 75 percent interest in
Tongyi Lubricants, China, to
Huo's Group and
The Carlyle Group, following regulatory approval.
Tongyi, a joint venture between Shell and Huo's Group, is a Chinese lubricant supplier with blending plants in Beijing, Xianyang and Wuxi. Shell acquired its 75 percent stake from Huo's Group in 2006.
"The commercial terms of the agreement will remain confidential," the company said today in a statement.
"Both divestments are consistent with Shell's strategy to concentrate its downstream footprint on assets and markets where it can be most competitive, and to divest its LPG businesses worldwide," Shell added.
Despite the sale of its stake in Tongyi Lubricants, Shell emphasized in August - when it first announced the deal - that it is "committed to growing its lubricants business in China through strong relationships with distributors, collaboration with key vehicle and equipment manufacturers, and the sale of premium products across all sectors".
In June 2015, Shell opened a new lubricants blending plant in Tianjin with the capacity to produce 330 million litres of finished lubricants per year.
Other recent downstream divestments include the sale of downstream businesses in Australia and Italy, a number of retail sites in the UK, and the initial public offering of Shell Midstream Partners L.P. Shell has also agreed the sale of its marketing business in Denmark and Norway and its LPG businesses in France. In July 2015, Shell announced the sale of its shareholding in Showa Shell in Japan to Idemitsu.
