Shell sells Australian aviation fuel arm
Australia
MELBOURNE, December 19, 2016 – Shell has signed a contract to sell its Australian aviation fuel enterprise to Viva Energy Australia for some USD 250 million, the company announced in a statement on Monday.
The sale, subject to approval by regulatory authorities, is projected to be completed by the middle of 2017. Employees of Shell Aviation Australia will be retained and the company will continue to sell Shell-branded products, the statement added.
“We have been the exclusive supplier of jet fuel to Shell Aviation Australia over the past two years so this purchase enables us to expand into the airports and provide direct supply to customers which is very exciting for us,” said Viva Energy’s CEO Scott Wyatt in a separate press release. “This acquisition will see Viva Energy supply more than 50 airports around the country.”
Also on Monday, Shell finalised the sale of 31.2% of Showa Shell Sekiyu to Japan’s rival refiner Idemitsu Kosan for some USD 1.35 billion. The transaction is widely seen as a step toward the eventual merger of the two companies, though key members of Idemitsu’s board have reportedly opposed a full merger.
“The sale supports Shell’s strategic commitment to focus downstream activity on areas where it can be most competitive,” Shell said in a statement.
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