Key facts
- Exxon Mobil is reportedly competing to acquire Shell's U.S. chemicals business.
- The business is estimated to be worth approximately $8 billion.
- Other bidders include LyondellBasell, Apollo Global Management, and Kuwait Petroleum Corporation.
- Non-binding offers have been submitted by the interested parties.
- Shell's U.S. chemical operations consist of four facilities located in Louisiana, Texas, and Pennsylvania.
Exxon Mobil is reportedly among the bidders vying for Shell's U.S. chemicals business, a division that could be valued at around $8 billion, according to an unnamed source cited by the Financial Times. The U.S. energy giant is facing competition from LyondellBasell, Apollo Global Management, and Kuwait Petroleum Corporation.
These potential buyers have submitted non-binding offers to Shell, with some bids encompassing the entire division while others target only parts of it. Shell's U.S. chemical operations consist of four facilities located in Louisiana, Texas, and Pennsylvania, producing chemicals essential for industries ranging from plastics to detergents.
This potential sale comes as Shell continues to adjust its portfolio to prioritize capital allocation for long-term value, a strategy outlined in its Capital Markets Day 2025. The company has recently completed two other asset sales: its European onshore wind and solar power business was sold to TotalEnergies, and a 35% stake in a Cyprus offshore gas project was acquired by Hungary's MOL for $720 million. These divestitures align with Shell's stated goal of focusing on expanding its liquefied natural gas operations.
Despite these divestitures, Shell's chemicals business contributed significantly to its strong second-quarter results, which saw adjusted earnings reach $9.84 billion, boosted by higher oil and gas prices, improved refining margins, and increased chemical margins.