The Sunday Times (UK): Iranians and Chinese bid for Basell: “THE state-owned oil companies of Iran and China have been shortlisted to buy Shell’s Basell plastics business, which is expected to be sold next year.”: “The sale will be the first in a $10-$12 billion asset-disposal programme by Shell in the wake of a reserves overbooking scandal.” (ShellNews.net) 7 Nov 04

By Dan Box

November 07, 2004

THE state-owned oil companies of Iran and China have been shortlisted to buy Shell’s Basell plastics business, which is expected to be sold next year.

Others in the running are Blackstone, which has joined forces with rival US private- equity group Apollo Management; two other American private-equity firms, Bain and Kravis Kohlberg Roberts; and a private-equity group based in Saudi Arabia.

Basell is expected to fetch about $4 billion (£2.1 billion). Credit Suisse First Boston and Lazard are advising on the sale process, which has now completed the first round of bids. A second round is due to be held in January.

The business is jointly owned by Shell and BASF, the German chemicals giant. It is the world’s largest producer of polypropylene and Europe’s biggest maker of polyethylene, with sales last year of £3.9 billion.

The sale will be the first in a $10-$12 billion asset-disposal programme by Shell in the wake of a reserves overbooking scandal.

The company aims to sell off underperforming and non-core operations to help finance £24 billion in capital expenditure over the next three years.

This money will be used to help revitalise Shell’s exploration and production business, after it was forced to cut almost a third of its proven reserves.