By OGJ editors
HOUSTON, July 6 -- Aramco Overseas Co. BV, a subsidiary of Saudi Aramco, signed an agreement to acquire a strategic shareholding in Showa Shell Sekiyu KK to form a partnership with Royal Dutch/Shell Group.
The partnership will enhance Showa Shell's refining and marketing business in Japan, Royal Dutch/Shell said. Terms of the deal were not disclosed. HSBC Investment Bank, which advised Saudi Aramco, said the equity value was about $500 million.
Royal Dutch/Shell, a 50% shareholder of Showa Shell, agreed to transfer 37.5 million shares, or 9.96% of its Showa Shell shares, to Saudi Aramco. The transfer, expected to be completed in August, will be accomplished by Shell Petroleum NV selling Shell Japan Holdings BV to Saudi Aramco.
Saudi Aramco also agreed to acquire an additional 18.8 million shares, or 4.99%, in Showa Shell subject to satisfaction of certain commercial conditions.
Shell Oil Products Chief Executive Rob Routs said, "Saudi Aramco brings crude supply strength through its scale, crude mix, and flexibility and will provide Showa Shell an 'affiliate' supply relationship which brings benefits of economic value and security to Showa Shell."
