Shell and Exxon’s $8bn UK chemicals unit put up for sale

✦ Meridian Analysis

Shell and ExxonMobil are reportedly exploring a sale of their jointly owned UK chemicals joint venture, Infineum, which the Financial Times values at roughly $8 billion. The owners have appointed Bank of America to run the sale, and the process is expected to start within days, according to Bloomberg. No bidder has been identified and no terms have been disclosed, meaning the transaction remains at the rumour stage. A separate process covers Shell's U.S. chemicals assets, for which four bidders were named as ExxonMobil, LyondellBasell, Apollo Global Management and the chemicals arm of the state-owned Kuwait Petroleum Corporation. What remains undisclosed includes the exact price or valuation multiple, the structure of any financing package, the identity of advisers on the buyer side, required regulatory clearances and the expected timetable for closing. Observers will watch for the emergence of a shortlist of bidders and any indications of whether the sale will be executed as a cash transaction or involve debt financing, as these details will shape the final deal dynamics.

Additional sources: Shell, ExxonMobil Reportedly Explore Sale of $8 Billion Infineum Chemical Unit - Bloomberg · ExxonMobil Is Eyeing a Potential $8 Billion Bet on Shell's U.S. Chemical Plants. Here's What It Means for XOM Stock. - The Globe and Mail

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