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Essar Oil Acquires Stanlow Refinery and Associated Local Marketing Business from Royal Dutch Shell - The Deal Allows Essar to Expand its Refinery Capacity Significantly - Deal Analysis From GlobalData
GlobalData, Sep 2011, Pages: 9
Essar Oil Acquires Stanlow Refinery and Associated Local Marketing Business from Royal Dutch Shell - The Deal Allows Essar to Expand its Refinery Capacity Significantly - Deal Analysis From GlobalData
Summary
Essar Energy plc (Essar), through its indirect wholly-owned subsidiary, Essar Oil (UK) Limited, completed the acquisition of Stanlow refinery and associated local marketing business in the UK, from Shell UK Limited, a subsidiary of Royal Dutch Shell Plc (Shell). The deal was earlier announced in February 2011. The total deal value is $1,266m. Of the total consideration, Essar paid $350m for the Stanlow refinery and $916m for the stock of crude oil, refined products and certain other inventory items at the Stanlow refinery site. On July 1, 2011, Essar Oil (UK) and Shell announced their plan to enter into agreements under which Essar Oil (UK) would purchase crude oil and feedstock for the Stanlow Refinery exclusively from Shell on a spot basis for five years post completion of the acquisition. Lazard & Co., Limited acted as financial advisor while Clifford Chance LLP acted as legal advisor to Shell for the transaction. Gleiss Lutz, Herbert Smith LLP and Stibbe acted as legal advisors to Essar Oil (UK) for the current deal. The acquisition will enable Essar to increase its current refinery production by approximately two thirds. The transaction implies deal values of $1,182.43 per bbl of daily installed capacity and $1,666.67 per bbl of daily throughput capacity.
Scope
- Rationale behind Essar acquiring Stanlow refinery and associated local marketing business in the UK,
- Strategic benefits for the companies involved,
- Geography covered -The UK
Reasons to buy
- Develop a sound understanding of the major M&A's, Partnerships, and Joint Ventures taking place in European oil & gas industry,
- Identify the most lucrative segments to leverage on the growth oppurtunities available in the UK's oil & gas market,
- Get a detailed analysis of a deal to enable you to take better decisions.
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