Shell Merges With German Company
Mar. 28, 2001
FRANKFURT, Germany (AP) _ Anglo-Dutch oil giant Royal Dutch Shell Group said Wednesday it will merge its German operations with German petroleum producer DEA, which is best known for its gas station chain.
The joint venture will encompass the refining, supply, distribution and oil-marketing activities of both companies, which expect to see at least $150 million a year in cost savings and enhanced revenue as a result of the combination.
The venture, to be headquartered in Hamburg, will operate a network of about 3,200 service stations in Germany while retaining both brands, and will have a network of complementary refineries.
Both companies will initially hold a 50 percent share in the joint venture, with Shell gaining majority control from 2004 by acquiring an additional 1 percent, Shell said. DEA is a wholly owned unit of German utility RWE AG, which will have the option to sell its share to Shell at a later date.
The deal, subject to European Union approval, also includes 45 DEA service stations in Poland, which will be integrated into the existing Shell network, but won't be part of the joint venture.