Royal Dutch Shell PLC has signed a $250m agreement with Vitol Africa B.V. for the sale of it 20% stake in Vivo Energy, which supplies fuels and lubricants to marine markets, Ship & Bunker reported. The sale, subject to regulatory approval, is expected to be finalized in the first half of 2017.
As part of the deal, a long-term brand license agreement has been renewed with Vitol to ensure the Shell brand remains visible in more than 16 countries across Africa, informed For Traders.
Vivo Energy was established in December 2011 to distribute and market Shell-branded fuels and lubricants in Africa. Vitol already has a 40% interest in the company. Helios Investment Partners has the other 40% share.
Shell explained: “the sale is in line with Shell’s strategy to concentrate its Downstream operations where it can be most competitive.” Citing similar reasons, Shell also announced that it had completed the sale of its 51% shareholding stake in the Shell Refining Company in Malaysia to Malaysia Hengyuan International Limited (MHIL).