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Market Chatter: Shell Eyes Multi-Billion Dollar Sale of US Chemical Assets; Exxon Among Suitors

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Shell (SHEL) is exploring a potential multibillion-dollar sale of its US chemicals assets as the UK energy giant looks to divest its weaker-performing operations, the Financial Times reported Monday.

The sale has attracted the interest of bidders such as US energy major ExxonMobil (XOM), LyondellBasell (LYB), private equity firm Apollo and the chemicals arm of state-owned Kuwait Petroleum Corporation. Interested bidders submitted non-binding indicative offers last month for a transaction which could result in a potential $8 billion sale, the report said, citing people familiar with the matter.

Shell's US chemicals operations, which produce chemicals used in plastics, detergents and pharmaceuticals, are spread across four sites in Louisiana, Texas and Pennsylvania.

It includes the Monaca, Pennsylvania complex, which received $14bn in investment from Shell, began operations in 2022, and produces up to 1.6mn tonnes of polymers annually. The potential sale price would be well below Shell's investment in its US chemical facilities, the report added.

Shell declined to comment, while Exxon, LyondellBasell, Apollo and Kuwait Petroleum Corporation did not immediately respond torequest for comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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