Shell is marketing its U.S. chemicals business for sale, with early bids indicating a valuation of up to $8 billion, according to a Financial Times report. The potential divestment follows years of underperformance in the segment and comes as the British energy major seeks to streamline operations amid a broader shift in strategy.
The portfolio includes four plants across Louisiana, Texas and Pennsylvania, with the Monaca complex in Pennsylvania—a $14 billion investment completed in 2022—capable of producing 1.6 million tonnes of polymers annually. Advisers have noted that the $8 billion valuation represents a significant discount to Shell’s original outlay, reflecting current market conditions and the challenging outlook for the chemicals sector.
Non-binding offers were submitted last month, with Exxon Mobil and LyondellBasell among the bidders evaluating the assets. Private equity firm Apollo and Kuwait Petroleum Corporation’s chemicals arm have also expressed interest, according to people familiar with the matter. Shell has not yet made a final decision on whether to proceed with a sale.
In parallel, Shell has begun working with advisers to market its European chemicals assets, though these are expected to attract substantially lower valuations. The company’s broader push to exit underperforming segments aligns with a strategic review aimed at improving capital efficiency and focusing on higher-growth areas within its energy and chemicals divisions.
