Shell could get its hands on Repsol's LNG assets

Anglo-Dutch oil mammoth Shell could be close to buying the liquefied natural gas (LNG) business of Spanish company Repsol.

Anglo-Dutch oil mammoth Shell could be close to buying the liquefied natural gas (LNG) business of Spanish company Repsol.

According to Spanish daily Cinco Dias, Respol is studying the possible sale of its LNG assets in Peru, Trinidad and Tobago, Canada and Spain for around €2.0bn, less than an initial estimate of €3.0bn.

The paper's internet edition reported that Repsol's board will "probably approve" the divestment at its meeting scheduled for Wednesday January 30th.

French company GDF Suez and Russian companies Gazprom and Novatek have also been named as parties interested in the assets.

The sale would be part of Repsol's attempt to divest €4.5bn worth of assets before 2016 in an attempt to reduce its debt and keep its investment grade rating.

However, analysts have expressed some doubts behind Shell's rationale for the deal. Peter Hutton of RBC Capital Markets was cited as saying by Reuters: "We find the logic of such a deal difficult from Shell's perspective. We would not expect it to show much interest in Repsol's stakes in either Atlantic LNG or Canaport, but there may be some synergy on Peru LNG."

Shell's shares were up 0.61% at 2,295p by 15:19 in London.

BC

Recommended

Ocado faces a “crunch” year – should you buy or avoid?
Share tips

Ocado faces a “crunch” year – should you buy or avoid?

Ocado was one of the big winners from the pandemic as customers moved online. But now it’s struggling, and losses are growing. So, asks Rupert Hargrea…
27 May 2022
What to buy as the tech-stock bull market crashes
Tech stocks

What to buy as the tech-stock bull market crashes

The decade-long bull market in tech stocks has come to a rapid halt. Investors need to distinguish solid stocks from speculative ones rather than just…
27 May 2022
Share tips of the week – 27 May
Share tips

Share tips of the week – 27 May

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
27 May 2022
Marks & Spencer shares look cheap – should you buy in?
Retail stocks

Marks & Spencer shares look cheap – should you buy in?

Marks & Spencer shares have been a disappointment for investors for two decades. But with the company now on something of a comeback, Rupert Hargreave…
25 May 2022

Most Popular

The world’s hottest housing markets are faltering – is the UK next?
House prices

The world’s hottest housing markets are faltering – is the UK next?

As interest rates rise, house prices in the world’s most overpriced markets are starting to fall. The UK’s turn will come, says John Stepek. But will …
23 May 2022
Scottish Mortgage Investment Trust has fallen hard. But is now the time to buy?
Investment trusts

Scottish Mortgage Investment Trust has fallen hard. But is now the time to buy?

After a spectacular couple of decades, the Scottish Mortgage Investment Trust has fallen by almost 45% so far this year. Rupert Hargreaves asks if no…
26 May 2022
Is it time to pick up growth stock bargains yet?
Investment strategy

Is it time to pick up growth stock bargains yet?

If you’re thinking of picking up some bargains from the tech stock crash, beware – there are still plenty of “growth traps” out there. John Stepek exp…
26 May 2022