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26

Royal Dutch Shell to Buy Out Canadian Branch

Royal Dutch Shell Plc. has offered to buy the minority shareholders in Shell Canada

European oil firm Royal Dutch Shell Plc. has offered to buy the minority shareholders in Shell Canada Limited in a bid to simplify the ownership structure of the group. The company is offering a cash price of C$40 per share.

Shell holds 78 per cent of the holding in the Canadian company. It said the proposal values Shell Canada's fully diluted minority share capital at approximately C$7.7 billion ($6.8 billion).

In a statement, the company said once Shell Canada Limited is fully combined with the group, the business will benefit from a simplified organization, additional economies of scale and portfolio development in the context of the group's global strategy. It described Canada as an important growth area where it will be a major investor in the years to come.

The offer will be conditional on more than 50 per cent of the outstanding shares held by minority investors are tendered for purchase.

Shares of Shell Canada had closed at C$32.80 Friday.