Essar Oil to buy Shell UK unit for $350-400 million

Friday, 18 February 2011 02:26 - - {{hitsCtrl.values.hits}}

MUMBAI (Reuters) - Indian refiner Essar Oil (ESRO.BO> is set to buy Royal Dutch Shell’s Stanlow refinery for about $350 million to $400 million (217 million to 249 million pounds), two sources with direct knowledge of the development told Reuters.

The two companies have agreed on the terms and an announcement is expected soon, said the sources, who declined to be named as they were not authorised to speak to the media before an official announcement.

“Essar can confirm that it is still in talks with Shell for the purchase of its Stanlow refinery and associated marketing businesses. Talks are progressing but we cannot comment on details or timelines,” an Essar spokesman said in a reply to a Reuters email seeking comment. Shell put plants at Stanlow and at Heide and Hamburg in Germany on the market last year and media reports have valued them at between 1 billion and 1.5 billion pounds.