21 September, 2007

Petronas Acquires European Automotive Lubricants Producer



KUALA LUMPUR, Sept 21 (Bernama) -- Petronas has signed an agreement to acquire European automotive lubricants producer FL Selenia SpA from affiliates of US investment firm Kohlberg Kravis Roberts & Co LP for about one billion euro.

In a statement here Friday, the national oil corporation said the acquisition provided "an exciting opportunity to create and add value for the group and at the same time realise the global aspirations of its lubricants business".

Based in Italy, FL Selenia is Europe's largest independent producer of branded automotive lubricants and other functional fluids, with operations across Europe, South America and the United States.

FL Selenia's product range includes lubricants, transmission, anti-freeze and functional fluids for automobiles, trucks, agricultural tractors and earth-moving machinery as well as for other industrial equipment.

Petronas said FL Selenia's expertise and geographic focus is complementary with its existing lubricants business, which includes manufacturing, marketing and distribution of high-end lubricants in Malaysia and other countries.

Petronas' premium products are its range of synthetic lubricants under the Syntium brand.

The company said its lubricants business has witnessed considerable growth and penetration of new markets in recent years, with Syntium products currently available in China, India, Thailand, Japan, Indonesia, South Africa and Switzerland.

The Syntium products currently command a strong market share in Malaysia, it added.

According to Petronas, the acquisition will bring another strong brand to the company's businesses and add critical mass to its lubricants markets in Europe, together with strong original equipment manufacturing (OEM) relationships and world-class research and development capabilities,

"This is expected to provide Petronas with a better position to penetrate the high growth Asian lubricants markets," it said.

Dresdner Kleinwort is acting as financial adviser to Petronas on this transaction which is subject to regulatory clearances.

"The entire management and staff of FL Selenia will remain with the company to continue to deliver its quality products and to work closely with Petronas to optimise the synergistic benefits of the two entities," Petronas said.

-- BERNAMA

Business must be good. I wonder who gets a cut from the buyout.









No comments: