Shell U.S. Chemical Assets Draw $8B Bids From Exxon, Others

Shell has attracted interest from multiple potential buyers, including ExxonMobil and LyondellBasell, for its U.S. chemicals business in a deal that could be valued at up to $8 billion, according to a report published on Monday. The sale is part of the British energy major's strategy to divest underperforming assets and sharpen its focus on core oil and gas operations.

The portfolio includes four chemical plants located in Louisiana, Texas, and Pennsylvania, which produce materials used in plastics, detergents, and pharmaceuticals. A key asset is the Monaca, Pennsylvania, complex, which began operations in 2022. Shell invested approximately $14 billion in that facility, which has an annual polymer production capacity of 1.6 million tonnes.

According to the report, private equity firm Apollo Global Management and the chemicals division of state-owned Kuwait Petroleum Corporation have also expressed interest. The four entities submitted nonbinding indicative offers last month, with bids covering both the entire business and individual assets. The potential $8 billion price tag represents a steep discount to the cumulative capital Shell has invested in the facilities.