Shell has drawn interest from ExxonMobil and LyondellBasell for its US chemical assets, which could fetch up to $8 billion, the Financial Times reported. Apollo Global Management, a private equity firm, and the chemicals division of Kuwait Petroleum Corporation, which is state-owned, are also weighing bids, according to people familiar with the matter cited by the FT. Shell is looking to sell off chemical plants that have been weak performers, the report said.
The business covers plants at four sites in Louisiana, Texas and Pennsylvania that make chemicals for plastics, detergents and pharmaceuticals, according to the FT.
Four bidders, non-binding offers
Last month, prospective buyers turned in non-binding offers, the FT said, some covering the full business and others covering only pieces of it:
- ExxonMobil
- LyondellBasell
- Apollo Global Management
- Kuwait Petroleum Corporation's chemicals arm
The FT said the reported price falls well short of what Shell has invested in building the facilities.
Renewables sale to TotalEnergies
Shell struck a deal earlier this month to sell its European onshore renewables power unit to TotalEnergies, part of a pullback from low-carbon spending as the company puts more weight on upstream production and trading.
