“Shell has decided to reshape the Downstream portfolio and intends to divest our shareholding in Shell Downstream South Africa (SDSA),” the oil giant said in a statement in response to Daily Maverick’s queries.
It said this decision was taken in the wake of a comprehensive review of “… the Downstream and Renewables businesses across all regions and markets in line with Shell’s focus on performance, discipline, and simplification”.
This confirms weekend reports in City Press and Sunday Times that Shell planned to exit South Africa. Shell provided no comment on the reports that it was also locked in a row with its BEE partner Thebe Investments over the value of the latter’s stake.
In its latest energy transition strategy report in March, Shell said it planned to divest from 1,000 service stations in 2024 and 2025 as it pivots to charging options for the electric vehicle market. It seems that South Africa’s service stations fit that bill.
The move will mark the end of an era as Shell has been a fixture of South Africa’s energy landscape for 120 years — a presence that saw it targeted by anti-apartheid campaigners in the 1980s.
Shell House in downtown Joburg was the former HQ of the African National Congress (ANC) and was a donation from the oil company to the party.
The move will also be seen as the latest blow to South Africa as an investment destination in the wake of mining giant BHP’s bid for Anglo American minus most of its assets in the country. DM
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