Infratil Buys Shell NZ For $696.5m

 

$696.5 million.

That’s how much Infratil and the New Zealand Superannuation Fund will be paying for Shell’s New Zealand fuel distribution and 17.1% interest in the New Zealand Refining Company.

Shell confirmed it was reviewing its New Zealand downstream assets including the company’s share in the Marsden Point refinery 13 months ago and today it was confirmed that the sale will go ahead this coming month.
The NZ Refining Company chairman, David Jackson, described the transfer as a positive move that will help secure New Zealand’s transport fuel supply for years to come. NZRC was a vital asset supplying around 80% of NZ’s fuel needs and  Shell’s decision to sell its downstream assets in one package set a clear pathway for the transaction to take place.
“We are especially encouraged by the transfer of much of the local expertise employed by Shell to the new company”, he said.
It will be interesting to see if Infratil now sell any of its existing assets such as NZ Bus, as had been speculated.

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4 Comments

 
  1. Nick R says:

    Wow, Infratil buys into gas stations and considers dropping public transport.
    I guess they can read government policy directions as good as anyone else!

  2. Jeremy Harris says:

    If I was an Infratil director I might read a little bit about a phenomenon called “peak oil” might be affecting their business just a tad over the next 20 years…

    I’ll buy NZ Bus if I can only find that $400 million I left lying around…

  3. rtc says:

    I would say that NZ Bus now had quite a big conflict of interest - they will be very opposed to any planned upgrades of bus routes to anything not using petrol/diesel powered buses and won’t really have an interest in growing PT.

    I hope this means the rumoured sell off of NZBus to Veolia comes true.

 

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