Hengyuan buys Shell Refining Malaysia

The private Chinese refinery company is paying $66m for a 51% stake but the total cost is set to rise to $480m once debt and upgrade requirements are factored in.

Hengyuan buys Shell Refining Malaysia

Shandong Hengyuan Petrochemical beat out other bidders to purchase a majority stake in Shell’s Malaysian refining unit for a total capital cost of $480 million, marking the first time an independent Chinese refinery has made an international refinery acquisition.

Hengyuan, a Dezhou-based private refinery company, was the winning bidder on Monday in an auction for a 51% stake in publicly traded Shell Refining Co Federation of Malaysia.

The two companies entered into...

FinanceAsia has updated its subscription model. Registered readers now have the opportunity to read five articles from our award-winning website for free. Please subscribe for unlimited access.

Print Edition

FinanceAsia Print Edition

EVENTS