Shell in Talks to Sell South Africa Fuel Stations to Adnoc for ~$1B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy SHEL?
Source: seekingalpha
- Deal Valuation: Shell is in advanced discussions with Abu Dhabi National Oil Co. (Adnoc) to sell its retail fuel stations in South Africa, with the deal likely valued at around $1 billion, highlighting Shell's commitment to divesting non-core assets globally.
- Market Share Impact: Should the deal proceed, Adnoc would acquire approximately 600 retail fuel outlets from Shell, gaining about 10% of the market share in Africa's largest economy, thereby strengthening its competitive position in the region.
- Competitive Landscape: Adnoc emerged as the preferred bidder after Shell's negotiations with oil trader Gunvor fell through, indicating the intense competition among bidders for these valuable assets.
- Strategic Realignment: This potential sale is part of Shell's broader strategy to divest non-core holdings, reflecting the company's efforts to optimize its asset portfolio and focus on its core business operations.
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Analyst Views on SHEL
Wall Street analysts forecast SHEL stock price to fall
10 Analyst Rating
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 91.500
Low
41.75
Averages
74.27
High
91.00
Current: 91.500
Low
41.75
Averages
74.27
High
91.00
About SHEL
Shell plc is an international energy company engaged in the principal aspects of the energy and petrochemical industries. The Company's segments include Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate. The Integrated Gas segment includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure. The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas and operates the infrastructure necessary to deliver them to the market. The Marketing segment comprises the Mobility, Lubricants, and Sectors & Decarbonization businesses. The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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