Essar Energy Takes Over Stanlow Refinery

Reports are now showing that India’s very own Essar Energy has just struck a deal with Shell to buy the second biggest oil refinery in the UK. Experts are already saying that this is a deal that could be worth some $1.3 billion.

For those that do not know, the second biggest refinery in the UK is the Stanlow Refinery. This one refinery alone produces about one sixth of the UK’s petrol. Overall, it accounts for about 15 percent of the production from refineries located in the UK. Thus, it’s safe to say, that some are not sure if this deal was a smart move by Shell.

However, the deal is not done just yet. Although the companies may have agreed on it, the deal is still subject to shareholder approval. In the end, people are assuming that this deal will be completed in the last six months of the year, if everything goes the way the companies plan.

Not everything is known about the deal just yet. However, what is known is that the Indian company has agreed to pay $350 million for the site and another $780 million for crude oil and stock on the Stanlow Refinery.

The good news is that Essar said that it has no plans at all to make any kind of redundancies. Thus, the 960 people who currently work at the plant should be safe. In fact, Essar said that it hopes to invest hundreds of millions of pounds into the site to help develop its capability. If this is the case, then more people will have to be hired in the long run.