After pulling out of Nigeria, the energy company now intends to leave South Africa, Reuters reports.
The oil giant unveiled its plan to divest its controlling stake in Shell Downstream SA (SDSA), a South African downstream unit, following a comprehensive review of its global operations.
“As a result of this review, Shell has decided to reshape the downstream portfolio and intends to
divest our shareholding in SDSA … this decision was not taken lightly” a Shell statement said.
The company did not specify when the decision would come into effect.
Shell has been operational in South Africa for 122 years and has been in partnership with Thebe Investment Corporation for the past 22 years.
SDSA formed when Shell South Africa Marketing and Shell South Refining merged, with Thebe Investment Corporation owning 28%.
According to Sunday Times, a disagreement with its BEE partner, Thebe Investments, influenced Shell’s choice about its ownership in the company.
Source: REUTERS.
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