Shell to sell its 75% stake in Tongyi Lubricants in China to Huo’s Group and The Carlyle Group

Shell has signed an agreement to sell its 75% stake in Tongyi Lubricants in China to Huo’s Group and The Carlyle Group. The transaction is expected to complete by late 2015 or early 2016, subject to regulatory approvals.

THE HAGUE, 7-8-2015 — /EuropaWire/ — Tongyi, a joint venture between Shell and Huo’s Group, is a prominent Chinese lubricant supplier with blending plants in Beijing, Xianyang of Shaanxi province and Wuxi of Jiangsu province. Shell acquired its 75% stake from Huo’s Group in 2006. The sale 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.

Shell is committed to growing its lubricants business in China through strong relationships with distributors, collaboration with key vehicle and equipment manufacturers, and the sale of premium products across all sectors. In June 2015, Shell opened a new lubricants blending plant in Tianjin with the capacity to produce 330 million litres of finished lubricants per year, enough to fill more than 65 million cars.

Other recent Downstream divestments include the sale of Downstream businesses in Australia and Italy; a number of retail sites in the UK, and the initial public offering of, and further drop downs to, Shell Midstream Partners L.P. Shell has also agreed the sale of its marketing business in Denmark and Norway and its LPG businesses in France. In July 2015, Shell announced the sale of its shareholding in Showa Shell in Japan to Idemitsu.

Enquiries
Shell International Media Relations: +44 20 7934 5550
Shell China Media Relations: +86 106 505 4501 ext.2685

Cautionary note
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this announcement “Shell”, “Shell Group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. “Subsidiaries”, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to companies in which Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this announcement, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements.

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