In a teleconference yesterday, IT&E president and CEO Rick Delgado said that the agreement covers the sale of Shell’s retail, commercial and aviation businesses owned by Shell Guam Inc. and Shell Company (Pacific Islands) Limited.
Delgado said they will take over the 28 Shell stations on the three islands, including the eight stations on Saipan, early next year or within the first quarter of 2010.
“We are excited of the opportunity to make new business and pour in new investments,” he said.
He refused to divulge how much his company bought the business.
Status quo
Delgado said Shell will retain its almost a hundred current employees in the three areas.
“We may bring in additional employees from other areas when we take over and when the need arises, but it will mostly be for senior positions,” he said.
Under separate agreements, Delgado said that they will also be appointed as distributor of Shell-branded lubricants and servicing Shell Marine Product customers for the Northern Pacific Island markets.
He said the decision by Shell to move to a distributor model supports its portfolio focus drive and follows a number of similar deals in other countries.
The deal is subject to regulatory clearances, approvals and clearances.
Delgado said their company’s takeover of the Shell outlets in the Northern Pacific will not affect the fuel prices which are not locally regulated but are reliant on world prices.
He said they will still continue sourcing fuel from Singapore.
By the time IP&E Holdings takes over the Shell operation in the North Pacific Islands, the Delgado family will have invested approximately $150 million in the region since it acquired Verizon’s fixed and wireless assets in 2005.
In IT&E, the Delgado family partners with the Sumitomo Corp. of Japan, one of the largest Japanese trading companies.
