Shell Acquires Full Control of Chinese JV

Shell Acquires Full Control of Chinese JV

Royal Dutch Shell has acquired full control of a joint venture (JV) in China pertaining to gas stations in an effort to double down on the Chinese fuel retailing market, according to Bloomberg.

As a result, Shell will buy the remaining stake of the Chongqing Doyen Shell Petroleum & Chemical Company (CDSPCC). Around $149 million is expected to be paid in return for 51% of the joint venture, signaling the end of CDSPCC’s association with the gas station chain, which dates back to 2006.

China has lifted restrictions on foreign investment in gas stations in 2018, renouncing old legislation stating that a Chinese partner must hold the majority of the shares in a chain with more than 30 outlets. 

This is a strategic decision taken by Shell to try and ride the wave of China’s transition to a net-zero emitter by 2060.

Login

Welcome! Login in to your account

Remember me Lost your password?

Lost Password