Royal Dutch/Shell Group today said it and partner Saudi Aramco had agreed to buy out US-based Texaco from a three-way US gasoline venture.
Under the last minute deal, Shell and the state-controlled Saudi group will buy out Texaco's interests in oil-refining and petrol-marketing businesses Equilon and Motiva for a gross sum of $3.8 billion.
That figure includes cash of $2.1 billion, acquired debt of $1.4 billion, and $0.3 billion in pension liabilities.
The sale is aimed at heading off any regulatory objections to the proposed takeover of Texaco by its larger US rival Chevron and should allow that deal to go ahead.
Shell and Texaco needed to settle a long-running dispute over price by today or the assets would have been put into trust.
Texaco and Chevron expect to complete their merger later today.