Shell is seeking to divest its U.S. chemical assets, which could fetch as much as $8 billion, according to a report by the Financial Times. Major players in the energy and chemical sectors, along with a private equity firm, have expressed interest in these assets.
Potential bidders include ExxonMobil, LyondellBasell, private equity firm Apollo, and the chemicals division of state-owned Kuwait Petroleum Corporation. This potential sale highlights a broader trend among major energy companies to re-evaluate or divest their chemical units amidst challenging market conditions.
ExxonMobil Holdings Corporation, a publicly traded entity, closed at $165.11 USD, experiencing a -0.63% change on the day but a +37.20% increase since January 1st. LyondellBasell Industries N.V. closed at $67.53 USD, with a -0.84% change on the day. The chemical sector has been facing headwinds, with some CEOs noting "very challenging margins" and an "incredibly prolonged trough" due to overcapacity, particularly in Asia and the Middle East.
Shell's move to sell these assets comes as other majors are also re-strategizing their chemical operations. For example, Chevron has been reported to be open to acquiring Phillips 66 chemical stakes, and Ashland has explored sales after receiving takeover interest. This indicates a period of significant consolidation and strategic realignment within the chemicals industry among major energy companies.
