Shell will divest its majority shareholding from a local South African downstream unit after a comprehensive review of its businesses across all regions.
“As a result of this review, Shell has decided to reshape the downstream portfolio and intends to divest our shareholding in SDSA. This decision was not taken lightly,” a Shell statement said. It did not specify when the decision took effect.
Shell Downstream SA (SDSA) was formed after Shell South Africa and black empowerment company, Thebe Investment Corporation, agreed a decade ago to merge Shell South Africa Marketing and Shell South Refining businesses. Thebe held a 28% equity stake.
Shell, which has been present in South Africa for more than century, is still exploring the country’s offshore, incurring opposition from environmental campaigners who have launched court action.
During the divestment process, Shell said on Monday it would work to preserve SDSA’s operating capabilities and maintain its brand presence.
Full story at Shell to exit South Africa's downstream businesses - CNBC Africa
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