Shell Struggles to Divest Its Stake in German Schwedt Refinery

Core Viewpoint - Shell plc is facing delays in the sale of its 37.5% stake in the Schwedt refinery to Prax Group due to pending lawsuits and regulatory approvals [1][3][4] Group 1: Sale Challenges - The planned sale of Shell's stake in the Schwedt refinery has been delayed, with expectations for closure by the first half of 2024 [1] - Shell has been attempting to divest its stake in the refinery for several years, which is a crucial facility for fuel supply in the Berlin-Brandenburg region [2] - Rosneft, a major stakeholder in the refinery, poses challenges due to its ownership rights, despite being stripped of control by Berlin following the Russian invasion of Ukraine [3][5] Group 2: Legal Complications - One pending lawsuit involves Rosneft's attempt to block the sale to Prax, although a German court has indicated low chances of success for this bid [4] - A previous ruling by the Berlin administration court theoretically granted the Alcmene group the right to take over Shell's stake, adding further complications to the divestment process [7] Group 3: Financial Aspects - The estimated value of Shell's stake in the Schwedt refinery ranges from 155 to 190 million euros, but it has a negative equity value of approximately 14 million euros [6] - The agreement between Shell and Prax includes a clause for renegotiation if the deal is not concluded by mid-September 2024 [8] Group 4: Prax Group's Activity - Prax has made several successful acquisitions this year, including the Greater Laggan area oil and gas fields from TotalEnergies and the Lancaster oil field operator Hurricane Energy for 250 million euros [9]