Shell (SHEL) To Take Over Nature Energy In $2B Acquisition
Shell plc SHEL announced that it will acquire a 100% stake in Danish biogas producer Nature Energy Biogas from Davidson Kempner Capital Management LP, Pioneer Point Partners and Sampension for about $2 billion.
Headquartered in Denmark, Nature Energy produces Renewable Natural Gas (RNG) from agricultural, industrial and household wastes. The company operates 12 biogas plants in Denmark and one in France and has others in the pipeline.
As a result of the acquisition, Shell will become the owner of Europe’s largest producer of RNG. The oil supermajor stated it would also acquire a portfolio of cash-generative operating plants, an associated feedstock supply and infrastructure, a pipeline of growth projects and Nature Energy’s know-how in RNG plant technology.
Per Shell, the takeover will augment the company’s ability to work with its established customer base across various sectors to fast-track its transition to net-zero emissions. It will also support SHEL’s desire to profitably develop its low-carbon fuel production and customer offering in its marketing business.
This transaction, which Shell expects to be accretive to earnings, is subject to regulatory approvals and is anticipated to close in the first quarter of 2023.
Shell is one of the primary oil supermajors, a group of U.S.- and Europe-based big energy multinationals with operations spanning worldwide. The company is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing. SHEL operates as an energy and petrochemical company.
Shell currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space that warrant a look include EnLink Midstream ENLC, Liberty Energy LBRT and Murphy USA MUSA, each sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
