Ultrapar eyes Shell assets
BRAZILIAN oil company Ultrapar is set to submit an offer for Royal Dutch Shell’s European liquefied petroleum gas (LPG) arm alongside a string of private equity bidders.
The Brazilian fuel and natural gas company is expected to submit a bid for the assets today, it is understood.
Other possible bidders are thought to include private equity firms PAI, Advent International, Axa Private Equity, CVC Capital Partners and First Reserve. Mexico’s Grupo Zeta Gas could also submit an offer, it is understood.
Anglo-Dutch Shell has hired Credit Suisse to sell its European LPG arm for as much as $1bn (£693m), as the group seeks to shed downstream assets to focus on more lucrative oil and gas production.
However, it is understood that the auction could be stalled due to opposition from French unions over the sale of the LPG arm, which includes the Paris-based Butagaz business.
Shell declined to comment on the bids.
The news comes after Shell said it would pay $4.7bn cash to buy privately held East Resources, giving it more exposure to promising shale gas reserves in North America.
The deal would raise Shell’s daily gas production in the region by about 7.5 per cent.