Shell UK agrees garage sales

Tue, 14 Apr 2015 | BUSINESS SALE

Shell UK has announced confirmation of the sale of 185 of its service stations in Britain.

The company confirmed that the sites have been sold to “selected independent dealers”, including Motor Fuel Group and Euro Garages. The former purchased 90 stations and the latter 68.

Contracts have been exchanged on 158 of the stations, while the remainder are expected to be completed in the coming weeks. Full handover of the service stations is expected to be completed by the end of 2015.

Shell's retail general manager for North Europe, David Moss, commented on the business sale: “I’m pleased these dealers have chosen to grow their businesses with Shell and are as committed as we are to delivering high-quality products and customer service.”

The deals went through with the agreement that the new owners will retain the Shell brand and will continue to sell Shell's high quality fuels for a minimum of five years post-sale.

The sale process began back in September 2014 as part of a strategic decision to reduce the number of company-owned service stations to around 550.

Mr Moss added that Shell selected these independent dealers to sell to because they believe they will “invest in the sites and aim to deliver the same high standards of safety and customer care that are synonymous with the Shell brand”.

The news comes shortly after Shell announced its move to purchase BG Group for £47 billion.

The sale will see the two massive companies merge and some analysts have suggested that their move to consolidate will prompt further M&A activity across the sector as companies look to increase their size in order to operate in such a competitive market.

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