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 a definitive agreement for Hengyuan to purchase Shell’s stake. Once this is concluded the Chinese refinery will make a mandatory offer for the remaining 49% of shares.
Falling oil prices are generally...