Shell is to sell its UK 272,000 barrel-per-day Stanlow Refinery and associated marketing businesses to Indian company Essar Energy for $1.3 billion (€950 million).
Shell says its decision to sell came because it wants to ‘concentrate its global manufacturing portfolio on larger and more sophisticated assets’.
Workers at the crude oil refinery were worried about their jobs but Essar says it does not plan to cut many postitions in the acquisition.
Essar Energy says that if it has confirmed it will go ahead with the acquisition by the end of March 2011, Shell will have three days to confirm the sale.
If Shell does not then sell the refinery on the agreed terms, it will pay Essar a break fee of $10 million.
Stanlow Refinery is the second largest refinery in the UK and Essar says it will give them ‘direct access to the UK market’. It plans to import products to the site from its refinery in Vadinar, in Gujarat state, India.