IP&E Holdings LLC, a company wholly-owned by the Delgado family of the Philippines, has acquired the downstream marketing businesses of Royal Dutch Shell Plc in North Pacific Islands for an undisclosed amount.
The agreement covers the sale of the retail, commercial and aviation businesses in Guam, Saipan and Palau from Shell Guam Inc. and Shell Pacific Inc.
IP&E Holdings said in a statement that its purchase of Shell’s downstream marketing business in the North Pacific region added to the group’s portfolio of investments in the region.
“Upon the completion of this transaction, the family would have invested approximately $150 million in the region from the time it acquired Verizon Communication’s fixed and wireless assets in 2005,” the company said.
The Delgados also own IT&E Overseas Inc., the leading telecommunications provider in the North Pacific islands.
The deal, which is subject to regulatory approvals and consents, follows a review by Shell of its downstream marketing businesses in the region. The Shell group, instead, will concentrate on larger markets.
The retail network will remain Shell-branded through several trademark licensing agreements, while aviation will be serviced through a technical service agreement.
Under separate agreements, IP&E Holdings will be appointed as distributor of Shell-branded lubricants and serve Shell marine product customers for the Guam, Saipan and Palau markets.
“The decision by Shell to move to a distributor model supports its portfolio focus drive and follows a number of similar deals in other countries,” said Shell.
Royal Dutch Shell is a global leader in the downstream business. The company has a a daily refining capacity of approximately four million barrels of crude oil. It is the world’s largest single-branded fuel retailer with some 46,000 service stations worldwide and operations in some 90 countries and territories around the world.
Shell Guam has provided high quality fuels and professional services in the North Pacific region for 21 years. Incorporated in Guam on Dec. 1, 1987, Shell purchased the assets of the Guam Oil & Refining Co. on Nov. 30, 1988, now known as the Agat Terminal.
Shell Guam has grown into a diversified business serving government agencies and consumers with petroleum storage and the sale of commercial and retail products and services.
IP&E Holdings is a subsidiary of Prospector Investments Ltd., a member of the Delgado group of companies that includes Citadel Holdings in the Philippines.
References:
http://www.manilastandardtoday.com/insideBusiness.htm?f=2009/november/27/business1.isx&d=/2009/november/27
