Shell will sell the majority of its refining and marketing businesses in Finland and Sweden to Finnish company Keele Oy.

The terms of the transaction include Shell’s retail business, including some 340 service station in Sweden and some 225 in Finland as well as its commercial road transport (CRT) business in both markets.

All service stations together with the CRT business will remain Shell-branded in both markets under a licensing agreement.

Also included is Shell’s 87,000-barrels-per-day Gothenburg Refinery, its bulk fuels business in both markets and its marine business in Sweden.

Shell will receive a total cash payment of approximately $640m from this sale.

Shell downstream director Mark Williams said that this transaction is consistent with Shell’s downstream strategy to reduce net refining capacity by 15%, to reduce the company’s marketing footprint, and focus the portfolio on profitability and growth potential.