The British-Dutch oil company Royal Dutch/Shell is to buy interests held by competitor Texaco in the Equilon and Motiva groups for $3.8bn, it said today.
The transaction, subject to government approval, was expected to be finalised by the end of the year, Shell said in a statement. The two transactions are comprised of $2.1bn in cash, $1.4bn in debt and about $30 million in pension liabilities.
After the acquisition of the Texaco interests, Shell Oil Company, a subsidiary of the British-Dutch oil giant, will own 100% of Equilon. Equilon operates mainly in the Western United States and holds 4,500 Shell gas stations and 4,500 Texeco gas stations.
The groups also owns four refineries,a lubricants business and an extensive pipeline network. Shell will also enter into a joint venture with the Saudi Refining, a subsidiary of Aramco Services, to aquire Texaco's interest in Motiva. Both companies will hold 50% in the group.
Motiva operates in the east of the US and holds 8,200 Texaco gas stations and 4,800 stations with the Shell brand in addition to four refineries and a terminal network.
