Aramco to Study Potential Bid for Shell’s Pakistan Unit - Bloomberg
Saudi Aramco is exploring a potential bid for Shell Plc’s assets in Pakistan, according to people familiar with the matter, possibly marking the Gulf oil giant’s first foray into the South Asian nation.
Aramco is studying the Shell assets including Karachi-listed Shell Pakistan Ltd., which has a market value of about $123 million, said the people, who asked not to be identified as the information is private. The Pakistani assets could be valued at around $200 million in a transaction, the people said.
Shell, one of the oldest multinational companies with operations in Pakistan, runs more than 600 fuel stations in the country and has been present there for about 75 years. Shell Pakistan also has a lubricants business in addition to the retail network.
There’s no certainty the deliberations will lead to a transaction, and other suitors could also emerge, the people said. A representative for Shell said the company is seeing strong interest from local and international buyers, declining to comment on specific companies.
“Any sale will be subject to a targeted sales process, the execution of binding documentation and the receipt of applicable regulatory approvals,” the representative said. A spokesperson for Aramco didn’t immediately respond to queries.
Shell said in June it decided to exit Pakistan and planned to sell its 77.4% stake in Shell Pakistan as well as its 26% ownership in Pak-Arab Pipeline Co., a state-backed cross-country pipeline system. The divestment plan comes as Shell executes a strategy under Chief Executive Officer Wael Sawan to increase returns to shareholders and cut businesses that aren’t making enough money.
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