Shell completes sale of Butagaz LPG business in France for $529m

Royal Dutch Shell has completed the previously announced sale of its Butagaz LPG business in France to DCC Energy in a transaction worth about €464m ($529m).

The completion comes on the heels of an announcement made by Shell in May regarding the receipt of a binding offer from DCC.

Shell stated that the latest transaction will not have any impact on its other businesses in France which include aviation, commercial fleet, lubricants, retail, and bitumen.

Separately, the company has also offloaded its 75% interest in Tongyi Lubricants in China to Huo’s Group and The Carlyle Group, upon receiving regulatory approval.

The company did not disclose the commercial terms of the agreement.

In August, Shell signed the agreement to sell its stake in Tongyi, which is a joint venture between the company and Huo’s Group.

The business supplies lubricant and has blending plants in Beijing, Xianyang of Shaanxi province and Wuxi of Jiangsu province.

In 2006, Shell acquired the stake in Tongyi from Huo’s Group.

According to Shell, both divestments are consistent with the company’s strategy to focus on its downstream assets and markets.

Shell opened a new lubricants blending plant in Tianjin in June which has the capacity to produce 330 million litres of finished lubricants a year.