The stock of Royal Dutch Shell Plc (AMS:RDSA) closed at €25.68 losing 1.23% in yesterday’s trading session. Talks between this company and Varo Energy over the Germany refinery stake sale have come to an end. The terms of the deal provided that Shell was entitled to a 37.5 percent stake in the 220,000 barrels daily.
These two business giants made the announcement last December outlining that they had entered advanced talks on the stake sale. However, the company’s spokesperson has revealed that the negotiations have in the meantime been discontinued.
A lot of people that have been following closely on the matter have been pushing for the two providers to disclose why the talks had come to a standstill. Pressure has specifically been directed to Varo’s spokeswoman to offer a valid explanation. She didn’t utter a word, a matter that has caused much speculation but there is hope that a word about it might be unveiled soon.
Varo Energy happens to be a joint venture between Carlyle Group, a private equity firm and the world’s biggest oil trader Vitol. The Bayernoil refinery in Germany and the refinery in Cressier in Switzerland are the two assets that Varo takes great pride in.
From the records, these two enormous assets have been streaming in high revenues to Varo and that has helped it make tremendous steps forward in terms of making significant business achievements.
Talks on the stake sale were expected to run smoothly with the involved parties hoping to get what they wanted in the deal. It was rather frustrating that things didn’t move according to plan. However, a Shell spokesperson expresses optimism saying that time would tell and the recent standoff wasn’t to be seen as an end.
One of the officials working with Varo opined, “In business, things don’t always work out as planned and that is why we wish to understand what just happened. We are retreating and may be sometime we might come up with even something better.”