Summary
- This is something that has been in the making for the last 2 years
- It signals Shells strategy
- Pending approval from the Greek state
Analysis
This is something that has been in the making for quite a few years. The sell of most of the assets in Greece will minimize Shell's presence to only a few business sectors such a aviation fuel, LPG, etc and the buyer (Motor Oil Hellas) is someone with a long cooperation with Shell in the fuel and lubricants units.
Although it is not close to the total value that Shell was looking for it signals and reinforces the company's strategic moves to exit mature markets and enter new more promising and high potential, and for that it is necessary to have a singnificant capital raising part of which will occur through sell of existing business units, such as the case at hand.
Only point of notice is that the final agreement is condition upon approval from the Greek state of monopolistic nature of business since recenlty Hellenic Petroleum (HELPE) acquired BP assets, so together MOH and HELPE control about 80% of the fuel market.
Demetrios Koufos consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
