EU: Commission clears Shell refinery sell-offs

The European Commission announced Monday it has cleared the buyout of several of oil giant Shell Deutschland Oil’s refinery assets within Germany to Sweden’s Nynas AB. According to a press release by the watchdog, the deal does not post a significant threat to competition.

In a statement, commissioner Joaquin Almunia justified the deal’s clearance with the fact that were the buyout to not take place, the refineries, located in Harburg, Germany, would just shut down. Such a situation would “dramatically” reduce production, he said.

The refineries produce a certain kind of oil used in various products including rubber and adhesives, as well as transformer oils.

According to the commission, the closure of such a refinery would lead to higher prices of such products or consumers.

The parties were issued a statement of objections regarding the merger last June, to which Shell and Nynas responded one month later.

The Commission did not detail the transaction’s financial plan.

Full Content: Europa

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