Shell to Buy Out Chemicals Partner

Royal Dutch/Shell Group agreed to buy out the 50% stake in its Montell polypropylene venture from partner Montedison for $2 billion as part of a reorganization of its worldwide chemicals business. Montedison, Italy’s largest natural gas supplier and a specialty chemicals manufacturer, said the sale will eliminate its debt of $800 million. Shell, the world’s largest publicly traded oil company, is hoping the move will boost returns at its chemicals unit, where operating profit fell 1% in the second quarter. Rivals such as Mobil Corp. and British Petroleum encountered no such problems and posted strong gains for their chemicals businesses. Netherlands-based Royal Dutch Petroleum Co. owns 60% of Royal Dutch/Shell Group of companies.