Macau (MNA) – Giant oil company Royal Dutch Shell plc has announced that it has completed the first phase of the sale of its Macau SAR and Hong Kong SAR LPG (Liquefied Petroleum Gas) marketing business to DCC LPG.
According to a press release by the company on Wednesday, the sale of the first phase was completed on December 31, 2017.
The sale of Shell’s entire LPG business in the SARs, first announced on April 5, 2017, was agreed between the parties for a total consideration of approximately US$150 million (MOP1.20 billion).
The company added that the provision of other Shell services to the MSAR will remain unaffected by the deal.
Confirming a previous announcement, the company stated that it has secured ‘a long-term brand licence agreement’ with DCC LPG to ensure that Shell brand LPG products continue to be visible and available in the city.
The company will continue to operate its LPG plant in Hong Kong, which is part of the second phase of the transaction agreed in the deal, subject to conditions which currently include regulatory approvals.
The company previously announced that it expects the entire deal to be completed in the first quarter of 2018, with the option given to all Shell LPG employees affected to transition to DCC Energy – also subject to relevant regulatory approvals.
Contacted by MNA, the company had not replied by the time this story had been posted.
DCC is an LPG supplier with operations across seven countries in Europe, according to the company.
The London-listed firm, founded in Ireland in 1977, also supplies natural gas, LNG, aerosol gas, and renewable energies.
The agreement entered into with Shell signals its first expansion business into the Asia market.
