Shell’s US Chemical Assets Draw Exxon, LyondellBasell and Other Potential Buyers

A group of major energy and investment companies is weighing a potential acquisition of Shell’s US chemicals operations in a transaction that could be worth up to $8 billion.

ExxonMobil and LyondellBasell are among the prospective buyers, with Apollo Global Management and Kuwait Petroleum Corporation’s chemicals division also reported to have expressed interest.

The assets being considered include chemical production facilities in three US states: Louisiana, Texas and Pennsylvania.

Shell’s chemicals business supplies materials used across several industries, including plastics manufacturing, detergents and pharmaceuticals.

The reported bidding process comes as Shell attempts to streamline its operations and concentrate resources on businesses it considers more strategically important.

Shell has been selling selected assets as part of that effort, particularly operations that have faced weaker profitability or have not delivered returns consistent with the company’s objectives.

The potential sale could provide Shell with additional capital while allowing another operator to take control of the chemicals facilities.

The bidding process is not yet a completed transaction. Initial proposals were non-binding, and interested parties are understood to have considered different approaches to the portfolio.

Some bidders are looking at the assets as a package, while others may be interested in acquiring selected operations.

The outcome could therefore involve a single buyer taking over the entire business or a division of the portfolio among several purchasers.

The reported valuation of up to $8 billion would represent a significant transaction for Shell, although it is considerably below the amount the company has invested in some of the facilities over the years.

Shell has not publicly confirmed the details of the bidding process.

If a sale is completed, it would mark another step in the company’s effort to reduce its exposure to chemicals and redirect investment towards its core energy operations.