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Shell PLC on Monday said that it has reached an agreement to buy Nature Energy Biogas AS for roughly $2 billion.
Nature Energy is a Funen, Denmark-based producer of renewable natural gas.
Shell has struck a deal with Davidson Kempner Capital Management LP, Pioneer Point Partners and Sampension to buy the company.
The acquisition will support the London-based oil and gas company’s ‘ambition’ to grow its low-carbon fuel production and customer offering.
It will also enable the company to work with Nature Energy’s ‘established customer base across multiple sectors’ to accelerate its transition to net-zero emissions.
Shell said the acquisition will be absorbed within its current capital range.
The transaction is subject to regulatory approvals and is expected to be closed in the first quarter of 2023.
‘Shell’s competitiveness in low carbon fuels derives from capabilities across the value chain, combining a world-class Trading and Supply organisation with access to differentiated technology and production assets,’ Shell’s Downstream Director Huibert Vigeveno stated.
Shell shares closed down 2.6% at 2,305.00 pence each on Monday afternoon in London.
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