Shell to sell stake in Tongyi Lubricants to Huo’s Group and The Carlyle Group
Shell has signed an agreement to sell its 75% stake in Tongyi Lubricants in China to Huo’s Group and The Carlyle Group
The transaction is expected to complete by late 2015 or early 2016, subject to regulatory approvals. Tongyi, a joint venture between Shell and Huo’s Group, is a prominent Chinese lubricant supplier with blending plants in Beijing, Xianyang of Shaanxi province and Wuxi of Jiangsu province. Shell acquired its 75% stake from Huo’s Group in 2006. The sale is consistent with Shell’s strategy to concentrate its Downstream footprint on a smaller number of assets and markets where it can be most competitive. ….