Shell Draws Exxon, LyondellBasell Interest in U.S. Chemicals Sale

Shell (NYSE: SHEL) (LON: SHEL) has attracted takeover interest from rivals ExxonMobil (NYSE: XOM) and LyondellBasell (NYSE: LYB) for a swath of its underperforming U.S. chemicals assets, according to a report from the Financial Times, as the British energy major presses ahead with a broader restructuring of its downstream portfolio.

The assets under review reportedly include Shell’s roughly $14 billion petrochemical complex in Monaca, Pennsylvania, a flagship ethane cracker facility that has struggled with weak margins since starting production in 2022. Other potential suitors named in various reports include private equity firm Apollo Global Management and Kuwait Petroleum Corporation’s chemicals arm, suggesting a competitive process that could value the disposal at up to $8 billion.

The move fits Shell’s ongoing strategy, led by CEO Wael Sawan, to shed capital-intensive, lower-return businesses and refocus on core oil, gas, and liquefied natural gas operations, where returns have been stronger. Shell has already trimmed refining capacity and exited several chemical joint ventures globally in recent years.

For Exxon, acquiring the assets could bolster its already substantial U.S. Gulf Coast and Appalachian petrochemical footprint, while LyondellBasell, a major polyethylene and polypropylene producer, could gain scale and feedstock synergies.

Shares of Shell, Exxon and LyondellBasell all traded lower Wednesday, with Shell down about 0.6%, Exxon off roughly 1.3%, and LyondellBasell sliding over 2%, amid broader softness in energy markets.

No formal sale process or timeline has been confirmed, and Shell, Exxon and LyondellBasell have not publicly commented on the report. Analysts caution that any transaction would likely require lengthy regulatory review given the scale of the U.S. petrochemical assets involved.