LONDON (Reuters) - Shell (L:RDSa) has received a 464 million euro ($529 million) binding offer for its Butagaz liquefied petroleum gas (LPG) business in France from DCC (L:DCC), marking the next step in the Anglo-Dutch oil major's drive to sell downstream assets.
Support services group DCC is now in exclusive talks with Shell, which is discussing the offer with staff at Butagaz and Shell France, the oil company said.
"The transaction is consistent with Shell's strategy to concentrate its downstream footprint on a smaller number of assets and markets where it can be most competitive, and is part of an ongoing exit from the LPG business globally," Shell said.
DCC, which has already purchased BP (L:BP) and Statoil 's (OL:STL) LPG businesses, said the proposed deal would be its largest acquisition and would make it Europe's third-largest LPG distributor.
Shell's downstream divestments have so far included some of its Norwegian and British retail businesses and refineries in Britain, Germany, France, Norway and the Czech Republic.